Question

Show the accounting equation on the basis of the following transaction

$\begin{array}{cc}& \\ & \left(Rs\right)\\ \text{(a)Udit stated business with}& \\ \text{(i) Cash}& 5,00,000\\ \text{(ii) Goods}& 1,00,000\\ \text{(b) Purchased building for cash}& 2,00,000\\ \text{(c) Purchased goods from Himani}& 50,000\\ \text{(d) Sold goods to Ashu (cost Rs 25,000)}& 36,000\\ \text{(e) Paid insurance premium}& 3,000\\ \text{(f) Rent outstanding}& 5,000\\ \text{(g) Depreciation on building}& 8,000\\ \text{(h) Cash withdrawn for personal use}& 20,000\\ \text{(i)Rent received in advance}& 5,000\\ \text{(j)Cash paid to Himani on account}& 20,000\\ \text{(k)Cash received from Ashu}& 30,000\end{array}$

Answer 1

Statement showing the effect of various transactions on Accounting Equation