Question

Show the Accounting Equation for the following transactions:

		₹
(i)	Gopinath started business with cash	25,000
(ii)	Purchased goods from Shyam	10,000
(iii)	Sold goods to Sohan costing ₹ 1,800	1,500
(iv)	Gopinath withdrew from business	5,000

Answer 1

S. No	Transactions	Assets					=	Liabilities	+	Capital
		Cash (Rs)	+	Stock (Rs)	+	Debtors (Rs)		Creditors (Rs)		(Rs)
(i)	Gopinath Started business with	25,000					=			25,000
		25,000					=			25,000
(ii)	Purchased goods from Shyam			10,000				10,000
		25,000	+	10,000			=	10,000	+	25,000
(iii)	Sold goods to Sohan			– 1,800	+	1,500	=			– 300
		25,000	+	8,200	+	1,500	=	10,000	+	24,700
(iv)	Gopinath withdrew from business	–5,000					=			– 5,000
		20,000	+	8,200	+	1,500	=	10,000	+	19,700

Assets	=		20,000 + 8,200 + 1,500
	=	Rs	29,700
Liabilities	=	Rs	10,000
Capital	=	Rs	19,700