Prove that the Accounting Equation is satisfied in all the following transactions of Sameer Goel:
(i) Started business with cash ₹ 10,000.
(ii) Paid rent in advance ₹ 300.
(iii) Purchased goods for cash ₹ 5,000 and credit ₹ 2,000.
(iv) Sold goods for cash ₹ 8,000 costing ₹ 4,000.
(v) Paid salary ₹ 450 and salary outstanding being ₹ 100.
(vi) Bought motorcycle for personal use ₹ 3,000.
(i) Started business with cash ₹ 10,000.
(ii) Paid rent in advance ₹ 300.
(iii) Purchased goods for cash ₹ 5,000 and credit ₹ 2,000.
(iv) Sold goods for cash ₹ 8,000 costing ₹ 4,000.
(v) Paid salary ₹ 450 and salary outstanding being ₹ 100.
(vi) Bought motorcycle for personal use ₹ 3,000.
S. No.
Transactions
Assets
=
Liabilities
+
Capital
Cash
(Rs)
+
Prepaid Rent
(Rs)
+
Stock
(Rs)
=
Creditors
(Rs)
+
Outstanding Salary
(Rs)
(Rs)
(i)
Started business with Cash Rs 10,000
10,000
10,000
10,000
=
10,000
(ii)
Paid Rent in Advance Rs 300
– 300
300
9,700
+
300
=
10,000
(iii)
Purchased goods for Cash Rs 5,000 and credit Rs 2,000
– 5,000
+
+
5,000
=
2,000
2,000
=
4,700
+
300
+
7,000
=
2,000
+
10, 000
(iv)
Sold goods for Cash Rs 8,000 Costing Rs 4,000
8,000
– 4,000
4,000
(Profit)
12,700
+
300
+
3,000
=
2,000
+
14,000
(v)
Paid Salary Rs 450 and Salary outstanding being Rs 100
– 450
=
– 450
(Expense)
100
– 100
(Expense)
12,250
+
300
+
3,000
=
2,000
+
100
+
13,450
(vi)
Brought motorcycle for personal use Rs 3,000
– 3,000
=
– 3,000
(Drawings)
9,250
+
300
+
3,000
=
2,000
+
100
+
10,450
Assets
=
9,250 + 300 + 3,000
=
Rs
12,550
Liabilities
=
2,000 + 100
=
Rs
2,100
Capital
=
10,450
|
S. No. |
Transactions |
Assets |
= |
Liabilities |
+ |
Capital |
||||||
|
Cash (Rs) |
+ |
Prepaid Rent (Rs) |
+ |
Stock (Rs) |
= |
Creditors (Rs) |
+ |
Outstanding Salary (Rs) |
|
(Rs) |
||
|
(i) |
Started business with Cash Rs 10,000 |
10,000 |
|
|
|
|
|
|
|
|
|
10,000 |
|
|
|
10,000 |
|
|
|
|
= |
|
|
|
|
10,000 |
|
(ii) |
Paid Rent in Advance Rs 300 |
– 300 |
|
300 |
|
|
|
|
|
|
|
|
|
|
|
9,700 |
+ |
300 |
|
|
= |
|
|
|
|
10,000 |
|
(iii) |
Purchased goods for Cash Rs 5,000 and credit Rs 2,000 |
– 5,000 |
+ |
|
+ |
5,000 |
= |
2,000 |
|
|
|
|
|
|
|
|
|
|
|
2,000 |
= |
|
|
|
|
|
|
|
|
4,700 |
+ |
300 |
+ |
7,000 |
= |
2,000 |
|
|
+ |
10, 000 |
|
(iv) |
Sold goods for Cash Rs 8,000 Costing Rs 4,000 |
8,000 |
|
|
|
– 4,000 |
|
|
|
|
|
4,000 (Profit) |
|
|
|
12,700 |
+ |
300 |
+ |
3,000 |
= |
2,000 |
|
|
+ |
14,000 |
|
(v) |
Paid Salary Rs 450 and Salary outstanding being Rs 100 |
– 450 |
|
|
|
|
= |
|
|
|
|
– 450 (Expense) |
|
|
|
|
|
|
|
|
|
|
|
100 |
|
– 100 (Expense) |
|
|
|
12,250 |
+ |
300 |
+ |
3,000 |
= |
2,000 |
+ |
100 |
+ |
13,450 |
|
(vi) |
Brought motorcycle for personal use Rs 3,000 |
– 3,000 |
|
|
|
|
= |
|
|
|
|
– 3,000 (Drawings) |
|
|
|
9,250 |
+ |
300 |
+ |
3,000 |
= |
2,000 |
+ |
100 |
+ |
10,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
= |
|
9,250 + 300 + 3,000 |
|
|
= |
Rs |
12,550 |
|
Liabilities |
= |
|
2,000 + 100 |
|
|
= |
Rs |
2,100 |
|
Capital |
= |
|
10,450 |
