Show the accounting equation on the basis of the following transactions.

1. Rajkumar started business with cash Rs 30,000.
2. Purchased goods for cash Rs 1,000.
3. Paid salary Rs 400.
4. Paid rent in advance Rs 2,000.
5. Charged depreciation Rs 300 on Furniture and Rs 500 on Machinery.

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Solution

S. No.

Transaction

Assets

=

Liabilities

+

Capital

Cash

+

Stock

+

Advance Rent

+

Furniture

+

Machinery

=

+

(i)

Commenced business with cash Rs 30,000

30,000

30,000

(ii)

Purchased goods for Cash Rs 1,000

(1,000)

1,000

29,000

+

1,000

+

–

–

–

=

–

+

30,000

(iii)

Paid salary Rs 400

(400)

=

(400)

28,600

+

1,000

+

–

–

–

=

–

+

29,600

(iv)

Paid rent in advance Rs 2,000

(2,000)

2,000

26,600

+

1,000

+

2,000

+

–

–

=

–

+

29,600

(v)

Charged depreciation Rs 300 on Furniture and Rs 500 on Machinery.

(300)

+

(500)

=

(800)

26,600

+

1,000

+

2,000

+

(300)

+

(500)

=

–

+

28,800

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Show the accounting equation on the basis of the following transactions. 1. Rajkumar started business with cash Rs 30,000. 2. Purchased goods for cash Rs 1,000. 3. Paid salary Rs 400. 4. Paid rent in advance Rs 2,000. 5. Charged depreciation Rs 300 on Furniture and Rs 500 on Machinery.

Show the accounting equation on the basis of the following transactions.

1. Rajkumar started business with cash Rs 30,000.
2. Purchased goods for cash Rs 1,000.
3. Paid salary Rs 400.
4. Paid rent in advance Rs 2,000.
5. Charged depreciation Rs 300 on Furniture and Rs 500 on Machinery.