Mr. Sahoo started business investing Rs 10,00,000. He purchased goods for Rs 4,00,000, Furniture for Rs 2,00,000 and plant and machinery of Rs3 ,00,000 & Rs 1,00,000 remains in hand. What shall be the amount of assets of the business in total?

Rs 10,00,000

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Rs 9,00,000

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Rs 6,00,000

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Rs 4,00,000

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Solution

The correct option is A
Rs 10,00,000

Value of assets shall be total of goods purchased(stock), furniture, plant & machinery & cash on hand i.e. Rs 10,00,000.

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Mr. Gopal thought of starting a business of readymade garments. For this, he withdrew cash of Rs 10,00,000 from his savings bank account & purchased goods worth Rs 7,00,000. Out of the balance, Rs 1,00,000 was paid by him as security for rent of the shop in which he shall start his business. He purchased furniture of Rs 1,00,000 for his shop & the rest was held as cash by him. What is value of capital introduced by him in the business?

Prepare a simple cash book from the following information:

2011 Jan.
1.	Mr. Ashvin started business with cash Rs 95,000.
3.	Purchased furniture for office use Rs 17,500.
4.	Purchased goods worth Rs 11,000.
7.	Purchased machinery for Rs 15,000.
10.	Sold goods of Rs 14,300 to Sanket Traders for cash.
13.	Received from Suyash Rs 9,000.
15.	Withdrew Rs 2,500 from business for personal use.
19.	Borrowed loan from Mr. Trilok Rs 40,000.
22.	Purchased goods of Rs 14,000 at 5% trade discount.
26.	Paid salary to staff Rs 18,000.
29.	Paid carriage on goods purchased Rs 1,400.
30.	Paid electricity bill Rs 4,980.
31	Deposited into bank Rs 7,000.

Show the accounting equation on the basis of the following transactions.

1. Rajkumar started business with cash Rs 30,000.
2. Purchased goods for cash Rs 1,000.
3. Paid salary Rs 400.
4. Paid rent in advance Rs 2,000.
5. Charged depreciation Rs 300 on Furniture and Rs 500 on Machinery.

Prepare an accounting equation from the following:

(i) Kunal started business with cash 2,50,000 Rs

(ii) He purchased furniture for cash 35,000 Rs

(iii) He paid commission 2,000 Rs

(iv) He purchased goods on credit 40,000 Rs

(v) He sold goods (costing 20,000) for cash 26,000 Rs

From the following transactions prepare necessary ledger accounts and balance them.

2011 Jan.	1	Sachin started Business with Cash Rs 10,000 and Machinery Rs 15,000
	1	Purchased goods for cash Rs 3,000.
	3	Sold goods for cash Rs 4,000.
	5	Purchased furniture on credit from Poona Traders Rs 7,000.
	8	Purchased goods on credit from Mr. Dilip Rs 2,000 at 10% T.D.
	10	Sold goods on credit to Mr. Mahendra Rs 8,000 at 12.5% T.D.
	15	Paid Rent Rs 600.
	28	Withdraw cash for personal use Rs 1,000.
	20	Paid cash to Mr. Dilip Rs 1,800.
	25	Received cash from Mr. Mahendra Rs 6,800.
	31	Paid to Miss Sunita Rs 400 for salaries

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Mr. Sahoo started business investing Rs 10,00,000. He purchased goods for Rs 4,00,000, Furniture for Rs 2,00,000 and plant and machinery of Rs3 ,00,000 & Rs 1,00,000 remains in hand. What shall be the amount of assets of the business in total?

The correct option is A Rs 10,00,000 Value of assets shall be total of goods purchased(stock), furniture, plant & machinery & cash on hand i.e. Rs 10,00,000.

The correct option is A
Rs 10,00,000

Value of assets shall be total of goods purchased(stock), furniture, plant & machinery & cash on hand i.e. Rs 10,00,000.