Question

Show the accounting equation on the basis of the following transactions and present a balance sheet on the last new equation balances. Varun and Raj entered into a partnership agreement to deal in furniture. They contributed Rs. 2,10,000 and Rs. 1,50,000 as capital respectively. Other transactions were as under.
$$\begin{array}{cc}\text{(i)Timber purchased by them}& 1,20,000\\ \text{(ii)Wages paid to carpenters}& 28,000\\ \text{(iii) Furniture sold (Costing Rs. 1,20,000)}& 1,50,000\\ \text{(iv) Furniture sold on credit(Costing Rs. 27,000)}& 30,000\\ \text{(v) Amount received from debtors}& 29,700\\ \text{Discount allowed}& 300\\ \text{(vi) Timber purchased on credit}& 18,000\\ \text{(vii) Furniture Purchased}& 15,000\\ \text{(viii)Payment to creditors Rs. 17,850 in full settlement}& \\ \text{(ix) Amount withdrawn}& \\ \text{Varun}& 6,000\\ \text{Raj}& 3,000\end{array}$$

Answer 1

Assets = Rs. 3,83,850, Liabilities = Nil and Capital = Rs. 3,83, 850.