Show the Accounting Equation on the basis of the following transactions and present a Balance Sheet on the last new equation balance:
₹
(i)
Raj commenced business with cash
70,000
(ii)
Purchased goods on credit
14,000
(iii)
Withdrew for Private use
1,700
(iv)
Goods purchased for cash
10,000
(v)
Paid wages
300
(vi)
(vii)
(viii)
(ix)
Paid to creditors
Sold goods on credit for
Sold goods for cash (cost price was Purchased motorcycle for cash ₹ 3,000)
Purchased furniture for
10,000
15,000
4,000
500
| ₹ | ||
| (i) | Raj commenced business with cash | 70,000 |
| (ii) | Purchased goods on credit | 14,000 |
| (iii) | Withdrew for Private use | 1,700 |
| (iv) | Goods purchased for cash | 10,000 |
| (v) | Paid wages | 300 |
| (vi) (vii) (viii) (ix) |
Paid to creditors Sold goods on credit for Sold goods for cash (cost price was Purchased motorcycle for cash ₹ 3,000) Purchased furniture for |
10,000 15,000 4,000 500 |
S. No.
Transactions
Assets
=
Liabilities
+
Capital
Cash
(Rs)
+
Stock
(Rs)
+
Furniture
(Rs)
+
Debtors
(Rs)
Creditors
(Rs)
(Rs)
(i)
Raj Commenced business
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)
Withdraw for Private use
– 1,700
=
– 1,700
(Drawings)
68,300
+
14,000
=
14,000
+
68,300
(iv)
Goods purchased for Cash
– 10,000
+
10,000
58,300
+
24,000
=
14,000
+
68,300
(v)
Paid Wages
– 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
– 15,000
+
15,000
=
48,000
+
9,000
+
15,000
=
4,000
+
68,000
(viii)
Sold goods for cash (costing Rs 3,000)
4,000
– 3,000
1,000
(Profit)
52,000
+
6,000
+
15,000
=
4,000
+
69,000
(ix)
Purchased Furniture
– 500
500
51,500
+
6,000
+
500
+
15,000
=
4,000
+
69,000
Balance Sheet
Liabilities
Amount (Rs)
Assets
Amount (Rs)
Capital
69,000
Cash
51,500
Creditors
4,000
Stock
6,000
Furniture
500
Debtors
15,000
73,000
73,000
|
S. No. |
Transactions |
Assets |
= |
Liabilities |
+ |
Capital |
||||||
|
Cash (Rs) |
+ |
Stock (Rs) |
+ |
Furniture (Rs) |
+ |
Debtors (Rs) |
|
Creditors (Rs) |
|
(Rs) |
||
|
(i) |
Raj Commenced business |
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) |
Withdraw for Private use |
– 1,700 |
|
|
|
|
|
|
= |
|
|
– 1,700 (Drawings) |
|
|
|
68,300 |
+ |
14,000 |
|
|
|
|
= |
14,000 |
+ |
68,300 |
|
(iv) |
Goods purchased for Cash |
– 10,000 |
+ |
10,000 |
|
|
|
|
|
|
|
|
|
|
|
58,300 |
+ |
24,000 |
|
|
|
|
= |
14,000 |
+ |
68,300 |
|
(v) |
Paid Wages |
– 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 |
|
|
– 15,000 |
+ |
|
|
15,000 |
= |
|
|
|
|
|
|
48,000 |
+ |
9,000 |
+ |
|
|
15,000 |
= |
4,000 |
+ |
68,000 |
|
(viii) |
Sold goods for cash (costing Rs 3,000) |
4,000 |
|
– 3,000 |
|
|
|
|
|
|
|
1,000 (Profit) |
|
|
|
52,000 |
+ |
6,000 |
+ |
|
|
15,000 |
= |
4,000 |
+ |
69,000 |
|
(ix) |
Purchased Furniture |
– 500 |
|
|
|
500 |
|
|
|
|
|
|
|
|
|
51,500 |
+ |
6,000 |
+ |
500 |
+ |
15,000 |
= |
4,000 |
+ |
69,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet |
|||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
Capital |
69,000 |
Cash |
51,500 |
|
Creditors |
4,000 |
Stock |
6,000 |
|
|
|
Furniture |
500 |
|
|
|
Debtors |
15,000 |
|
|
73,000 |
|
73,000 |
|
|
|
|
|
