|
(₹) |
|
(i) |
Mohan commenced business with |
70,000 |
(ii) | Purchased goods on Credit | 14,000 |
(iii) | Withdrew for private use | 1,700 |
(iv) | Purchased goods for Cash | 10,000 |
(v) | Paid wages | 300 |
(vi) | Paid to Creditors | 10,000 |
(vii) | Sold goods on Credit at par | 15,000 |
(viii) | Sold goods for Cash (cost price was ₹ 3,000) | 4,000 |
(ix) | Purchased furniture for cash | 500 |
ACCOUNTING EQUATION | ||||||||||||
S. No. | Transaction | Assets | = | Liabilities | + | Capital | ||||||
Cash | + | Stock | + | Debtors | + | Furniture | = | Creditors | ||||
(i) | Started business with cash | +70,000 | + | 70,000 | ||||||||
70,000 | = | 70,000 | ||||||||||
(ii) | Purchased goods on credit | +14,000 | +14,000 | |||||||||
70,000 | + | 14,000 | = | 14,000 | + | 70,000 | ||||||
(iii) | Withdrew for private use | –1,700 | –1,700 (Drawings) | |||||||||
68,300 | + | 14,000 | = | 14,000 | + | 68,300 | ||||||
(iv) | Purchased goods for cash | –10,000 | +10,000 | |||||||||
58,300 | + | 24,000 | = | 14,000 | + | 68,300 | ||||||
(v) | Wages paid | –300 | –300 (Expense) | |||||||||
58,000 | + | 24,000 | = | 14,000 | + | 68,000 | ||||||
(vi) | Paid to creditors | –10,000 | –10,000 | |||||||||
48,000 | + | 24,000 | = | 4,000 | + | 68,000 | ||||||
(vii) | Sold goods on credit at par | –15,000 | +15,000 | |||||||||
48,000 | + | 9,000 | + | 15,000 | = | 4,000 | + | 68,000 | ||||
(viii) | Sold goods (costing Rs 3,000) for Rs 4,000 | +4,000 | –3,000 | +1,000 (Profit) | ||||||||
52,000 | + | 6,000 | + | 15,000 | = | 4,000 | + | 69,000 | ||||
(ix) | Furniture purchased | –500 | +500 | |||||||||
51,500 | + | 6,000 | + | 15,000 | + | 500 | = | 4,000 | + | 69,000 | ||
|
Balance Sheet as on …… |
|||
Liabilities | Amount (Rs) | Assets | Amount (Rs) |
Creditors | 4,000 | Cash | 51,500 |
Capital | 69,000 | Stock | 6,000 |
Debtors | 15,000 | ||
Furniture | 500 | ||
73,000 | 73,000 | ||