For the following transactions in ABC Ltd, prepare Accounting Equation.
a. Started Business with Cash Rs 36,000
b. Purchased goods for cash Rs 18,000 and credit Rs 12,000
c. Paid Rent in advance Rs 300
d. Paid Salary Rs.300 and Salary outstanding is Rs 60.
e. Bought motorcycle for personal use Rs.3,000

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Solution

In the Books of ABC Ltd.
S. No.
Transaction
Assets
=
Liabilities
+
Capital
Cash
+
Stock
+
Furniture
+
Prepaid Rent
=
Creditors
Outstanding Salary
+

A
Started Business with Cash
36,000

36,000
B
Purchased goods for Cash Rs.18,000 and Credit Rs.12,000
(18,000)

30,000

12,000

C
Paid Rent in Advance
(300)

300

D
Paid Salary Rs 300 and Outstanding Rs 60
(300)

60

(360)
E
Bought Motor Cycle for Personal Use
(3,000)

(3,000)

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Vinod has the following transactions. Show accounting equation for the same:

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

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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.
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	25	Received cash from Mr. Mahendra Rs 6,800.
	31	Paid to Miss Sunita Rs 400 for salaries

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