1
Question
Prepare accounting equation from the following:
(i) Started a business with cash ₹ 1,00,000 and goods worth ₹ 20,000.
(ii) Sold 50% of above goods at a profit of ₹ 2,000 on credit to Ram.
(iii) Rent paid ₹ 5,000.
(iv) Ram paid 50% of his balance in cash.
(i) Started a business with cash ₹ 1,00,000 and goods worth ₹ 20,000.
(ii) Sold 50% of above goods at a profit of ₹ 2,000 on credit to Ram.
(iii) Rent paid ₹ 5,000.
(iv) Ram paid 50% of his balance in cash.
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Solution
Cash
+
Stock
+
Debtors
=
Liabilities
+
Capital
(i)
Started business with cash and goods
+1,00,000
+
20,000
=
+
1,20,000
(ii)
Sold goods on credit
0
˗
10,000
+
12,000
=
+
2,000
New Balance
1,00,000
+
10,0000
+
12,000
=
+
1,22,000
(iii)
Rent paid
˗ 5,000
=
˗
5,000
New Balance
95,000
+
10,000
+
12,000
=
+
1,17,000
(iv)
Ram paid cash
+ 6,000
˗
6,000
=
New Balance
1,01,000
+
10,000
+
6,000
=
+
1,17,000
|
|
|
Cash |
+ |
Stock |
+ |
Debtors |
= |
Liabilities |
+ |
Capital |
|
(i) |
Started business with cash and goods |
+1,00,000 |
+ |
20,000 |
|
|
= |
|
+ |
1,20,000 |
|
(ii) |
Sold goods on credit |
0 |
˗ |
10,000 |
+ |
12,000 |
= |
|
+ |
2,000 |
|
|
New Balance |
1,00,000 |
+ |
10,0000 |
+ |
12,000 |
= |
|
+ |
1,22,000 |
|
(iii) |
Rent paid |
˗ 5,000 |
|
|
|
|
= |
|
˗ |
5,000 |
|
|
New Balance |
95,000 |
+ |
10,000 |
+ |
12,000 |
= |
|
+ |
1,17,000 |
|
(iv) |
Ram paid cash |
+ 6,000 |
|
|
˗ |
6,000 |
= |
|
|
|
|
|
New Balance |
1,01,000 |
+ |
10,000 |
+ |
6,000 |
= |
|
+ |
1,17,000 |
|
|
|
|
|
|
|
|
|
|
|
|
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