Prepare accounting equation from the following
(i) Started business with cash Rs. 1,00,000 and machinery Rs. 80,000.
(ii) Purchased goods for cash Rs. 20,000 and on credit Rs. 30,000.
(iii) Sold goods for cash costing Rs. 10,000 and on credit costing Rs. 15,000 both at a profit of 20%
(iv) Cash withdrawn for personal use Rs. 10,000.
(v) Accrud interest Rs. 2,000.
(vi) Rent received in advance Rs. 1,000.
(vii) Interest on capital @ 10% (only on cash introduced as capital).
(viii) Interest on drawings charged @ 5% (Total drawings till now is Rs. 10,000).
(ix) Depreciation on machinery provided @ 10%.
(x) Rent paid in cash Rs. 1,000 and rent outstanding Rs. 500.
(xi) Prepaid insurance Rs. 1,000.
(xii) Bad debts written off Rs. 1,000.

Open in App

Solution

Suggest Corrections

180

Similar questions

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

(i) Commenced business with cash Rs.80,000.

(ii) Paid rent in advance Rs.1,000.

(iii) Purchased goods for cash Rs.30,000 and credit Rs.20,000.

(iv) Sold goods costing Rs.20,000 for Rs.30,000.

(v) Paid Salary Rs.800 and Salary outstanding Rs.200.

Q. What will be the effect of the following on the accounting equation?
(i) Harish started business with cash Rs.18,000.
(ii) Purchased goods for cash Rs.5,000 and on credit Rs.2000.
(iii) Sold goods for cash Rs. 4,000 (costing Rs.2,400)
(iv) Rent paid Rs.1,000 and rent outstanding Rs.200

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.

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

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

(i) Started business with cash Rs.30,000; Stock Rs.12,000; Machinery Rs.20,000;
Furniture Rs.10,000.

(ii) $\frac{1}{3}$ rd of the above goods sold at a profit of 10% on cost and half of the payment is received in cash.

(iii) Cash withdrawn for personal use Rs.2,000.

(iv) Interest on drawings charged @ 5 %.

Join BYJU'S Learning Program