Question

Show that the effect of following transaction on the accounting equation

$\begin{array}{cc}& \\ & \left(Rs\right)\\ \text{(a)Manoj started business with}& \\ \text{(i) Cash}& 2,30,000\\ \text{(ii) Goods}& 1,00,000\\ \text{(iii) Building}& 2,00,000\\ \text{(b) He purchased goods for cash}& 50,000\\ \text{(c) He sold goods ( costing Rs 20,000)}& 35,000\\ \text{(d)He purchased goods from Rahul}& 55,000\\ \text{(e) He sold goods to Varun (costing Rs 52,000)}& 60,000\\ \text{(f)He paid cash to Rahul in full settlement}& 53,000\\ \text{(g) Salary paid by him}& 20,000\\ \text{(h) Received cash from Varun in full settlement}& 59,000\\ \text{(i)Rent outstanding}& 3,000\\ \text{(j)Prepaid Insurance}& 2,000\\ \text{(k)Commission received by him}& 13,000\\ \text{(l) Amount withdrawn by him for personal use}& 20,000\\ \text{(m) Depreciation charged on building}& 10,000\\ \text{(n) Fresh capital invested}& 50,000\\ \text{(0) Purchased goods from Rakhi}& 6,000\end{array}$

Answer 1

Accounting Equation