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Overview of an Account

Purchased a t...

Question

Purchased a typewriter for official and Personal use of the proprietor in terms of accounting equation

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Solution

Dear Student

If the typewriter is purchased for official use personal use then it won't be recorded in the accounting equation.
However, if it is used for official purpose then it shall be recorded as an increase in the asset as typewriter against the decrease in the asset as cash outflow.

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Similar questions

Q. Show the accounting equation on the basis of following transactions:
(i) Commenced business with Cash ₹ 20,000; Goods ₹ 50,000 and Furniture ₹ 30,000.
(ii) Purchased goods from Gopal on Credit ₹ 40,000.
(iii) Sold goods for Cash ₹ 40,000 (costing ₹ 30,000).
(iv) Sold goods to Ram on Credit ₹ 65,000 (costing ₹ 50,000).
(v) Withdrew for personal use goods costing ₹ 5,000.
(vi) Purchased typewriter for personal use of the proprietor ₹ 20,000.
(vii) Purchased chairs for office use for Cash ₹ 10,000.
(viii) Paid for printing ₹ 500 and received Commission ₹ 1,200.
(ix) Introduced fresh Capital ₹ 40,000.
(x) Paid to Gopal ₹ 30,000.

Q. Prove that the Accounting Equation is satisfied in all the following transactions of Rajaram. Also prepare a Balance Sheet:−
1. Started business with Cash ₹ 1,20,000.
2. Purchased a typewriter for Cash for ₹ 8,000 for office use.
3. Purchased goods for ₹ 50,000 for cash.
4. Purchased goods for ₹ 40,000 on credit.
5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit.
6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000.
7. Received ₹ 800 for Commission.
8. Withdrew for private use ₹ 5,000 in cash.

Q. A sole proprietor decided to use the same bank account for his personal affairs as for his business. Which of the following accounting principles is violated?

Q. Which of the following books should be used to record purchase of a typewriter on account ?

Q. Pass Journal Entries to rectify the following errors:-
(1) Machinery purchased for ₹ 5,000 has been debited to Purchases A/c.
(2) ₹ 700 paid to Sh. Mohan Kapoor as Legal Charges were debited to his personal account.
(3) ₹ 10,000 paid to Escorts Company for Machinery purchased stand debited to Escorts Company account.
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(5) ₹ 20,000 paid for the purchase of a Motor Cycle for proprietor has been charged to 'General Expenses' A/c.
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