Question

Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation

$\begin{array}{cc}\text{Transaction}& \text{Amount (Rs.)}\\ \text{a. Started business with cash}& \text{1,20,000}\\ \text{b. Rent received}& \text{10,000}\\ \text{c. Invested in shares}& \text{50,000}\\ \text{d. Received dividend}& \text{5,000}\\ \text{e. Purchased goods on credit from Ragini}& \text{35,000}\\ \text{f. Paid cash for household expenses}& \text{7,000}\\ \text{g. Sold goods for cash (costing Rs. 10,000)}& \text{14,000}\\ \text{h. Cash paid to Ragini}& \text{35,000}\\ \text{i. Deposited into bank}& \text{20,000}\end{array}$

Answer 1

Statement showing the effect of various transactions on Accounting Equation