Rohit has the following transactions- Rs aCommenced business with cash - 1-50-000 1 text b Purchased machinery on credit - 40-000 1 c Purchased goods for cash - 20-000 1 d Purchased car for personal use - 80-000 1 e Paid to Creditors in full settlement - 38-000 1 t e x t f S o l d g o o d s f o r c a s h c o s t i n g R s 5-000g Paid rent - 1-000 t e x t h C o m m i s s i o n r e c e i v e d - 2-000 1end array Prepare the accounting equation to show the effect of the above transactions on the assets- liabilities and capital-

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Logical Description of Accounting Equation(AE)

Rohit has the...

Question

Rohit has the following transactions

$\begin{matrix} (R s) (a)Commenced business with cash & 1, 50, 000 (b) Purchased machinery on credit & 40, 000 (c) Purchased goods for cash & 20, 000 (d) Purchased car for personal use & 80, 000 (e) Paid to Creditors in full settlement & 38, 000 (f) Sold goods for cash costing Rs 5,000 & 4, 500 (g) Paid rent & 1, 000 (h) Commission received & 2, 000 \end{matrix}$

Prepare the accounting equation to show the effect of the above transactions on the assets, liabilities and capital.

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Solution

Statement showing the effect of various transactions of Accounting Equation.

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Use accounting equation to show the effect of the following transactions of M\s Royal Traders

$\begin{matrix} (R s) (a)Started business with cash & 1, 20, 000 (b) Purchased goods for cash & 10, 000 (c) Rent received & 5, 000 (d) Salary outstanding & 2, 000 (e) Prepaid insurance & 1, 000 (f) Received interest & 700 (g) Sold goods for cash (costing Rs 5,000) & 7, 000 (h) Goods destroyed by fire & 500 \end{matrix}$

Based on Table 1, the balance on the current account is:

Table 1

$\begin{matrix} Exports of goods and services & 1000 Imports of goods and services & 800 Net change in assets owned abroad & 500 Net change in foreign owned assets at home & 400 Unilateral transfers received & 100 Unilateral transfers paid & 200 Investment income paid to foreigners & 300 Investment income received from foreigners & 400 \end{matrix}$

Based on Table 1, the statistical discrepancy is:

Table 1

$\begin{matrix} Exports of goods and services & 1000 Importants of goods and services & 800 Net change in assets owned abroad & 500 Net change in foreign owned assets at home & 400 Unilateral transfers received & 100 Unilateral transfers paid & 200 Investment income paid to foreigners & 300 Investment income received from foreigners & 400 \end{matrix}$

Q. Match the statement in column I with the results in column II

\begin{matrix} Column- I & Column - II (A) A variable resistor is connected across a non ideal & (P) First increases for some time cell. As the variable resistor is & and then decreases continuously increased from zero to a very large value, the electric power consumed by the variable resistor (B) A circular ring lies in space having & (Q) First decreases for some time uniform and constant magnetic field which & and then increases is parallel to plane of the ring. Keeping the centre of ring fixed, the rings is rotated by 180^{\circ} about one of its diameter which is perpendicular to magnetic field with constant angular speed. For the duration the ring rotates, the magnitude of induced emf in the ring (C) A thin rod of length 1 cm lies along & (R) is always constant principal axis of a convex lens of focal length 5 cm. One end of rod is at a distance 10 cm from optical centre of the lengs. The convex lens is moved (without rotation) perpendicular to initial principal axis by 5 mm and brought back to its initial position. Length of image of the rod (D) A bulb (of negiligible inductance) and a & (S) increases or may increase capacitor in series are connected across an & over some time interval. ideal AC source of constant peak voltage and variable frequency. As frequency of AC source is continuously increased, the brightness of bulb \end{matrix}

Based on Table 1, the balance on the capital account is:

Table 1

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