Prepare accounting equation on the basis of the following:

(a) Harsha started business with cash Rs 2,00,000

(b) Purchased goods from Naman for cash Rs 40,000

(c) Sold goods to Bhanu costing Rs 10,000/- Rs 12,000

(d) Bought furniture on credit Rs 7,000

Open in App

Solution

S.No.

Explanation

Assets

=

Liabilities

+

Capital

Cash

+

Stock

+

Debtors

+

Furniture

Creditors

(a)

Increase in cash

2,00,000

=

Increase in capital

2,00,000

2,00,000

=

NIL

+

2,00,000

(b)

Increase in stock

40,000

Decrease in cash

(40,000)

1,60,000

+

40,000

=

NIL

+

2,00,000

(c)

Increase in debtors

12,000

Decrease in stock

(10,000)

Profit

2,000

1,60,000

+

30,000

+

12,000

=

NIL

2,02,000

(d)

Increase in furniture

7,000

Increase in creditors

7,000

1,60,000

+

30,000

+

12,000

+

7,000

=

7,000

+

2,02,000

Suggest Corrections

118

Similar questions

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

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

1. Mr. Rohit Kulkarni started business with cash Rs 70,000
2. Bought goods from sanjay Rs 1,000.
3. Sold goods to Shyam for Rs 50,000 (costing Rs 30,000).
4. Goods destroyed by fire (cost Rs 500, sale Price Rs 600).
5. Purchased Furniture from J.K Furniture on credit Rs 5,000.

Prepare accounting equation from the following:

		Rs
(a)	Kunal started business with cash	2,50,000
(b)	He purchased furniture for cash	35,000
(c)	He paid commission	2,000
(d)	He purchases goods on credit	40,000
(e)	He sold goods (costing Rs 20,000) for cash	26,000

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

1. Mr. Kumar commenced business with cash Rs 50,000.
2. Paid salary Rs 1,200.
3. Purchased furniture Rs 5,000.
4. Purchased goods from Rakesh for cash Rs 7,500.
5. Sold goods to Shyam costing Rs 13,000.
6. Paid Rent Rs 500.

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

Join BYJU'S Learning Program

Prepare accounting equation on the basis of the following: (a) Harsha started business with cash Rs 2,00,000 (b) Purchased goods from Naman for cash Rs 40,000 (c) Sold goods to Bhanu costing Rs 10,000/- Rs 12,000 (d) Bought furniture on credit Rs 7,000

Prepare accounting equation on the basis of the following:

(a) Harsha started business with cash Rs 2,00,000

(b) Purchased goods from Naman for cash Rs 40,000

(c) Sold goods to Bhanu costing Rs 10,000/- Rs 12,000

(d) Bought furniture on credit Rs 7,000