What will be the effect of the following on the accounting equation?
(i) Harish started business with cash Rs.18,000.
(ii) Purchased goods for cash Rs.5,000 and on credit Rs.2000.
(iii) Sold goods for cash Rs. 4,000 (costing Rs.2,400)
(iv) Rent paid Rs.1,000 and rent outstanding Rs.200

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Solution

Assets = liabilities + capital
Cash+stock = credirors + o/s rent +capital
1)
$18000$
$18000$
2)
$- 5000 + 7000 = 2000$ $+ 18000$
$13000 + 7000 = 2000$ $+ 18000$
3)
$4000 - 2400$ $1600$
$14000 + 4600 = 2000$ $+ 19, 600$
4)
$- 1000 = 200$ $- 1200$
$16000 + 4600 = 2000$ $200 + 18400$

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Q. What will be the effect of the following on the Accounting Equation?
(i) Harish started business with cash ₹ 18,000
(ii) Purchased goods for Cash ₹ 5,000 and on credit ₹ 2,000
(iii) Sold goods for cash ₹ 4,000 (costing ₹ 2,400)
(iv) Rent paid ₹ 1,000 and rent outstanding ₹ 200

Q. What will be the effect of the following on the Accounting Equation?
(i) Harish started business with cash ₹ 1,80,000.
(ii) Purchased goods for cash ₹ 60,000 and on credit ₹ 30,000.
(iii) Sold goods for cash ₹ 40,000; costing ₹ 24,000.
(iv) Rent paid ₹ 5,000; and rent outstanding ₹ 2,000.
(v) Sold goods on credit ₹ 50,000 (costing ₹ 38,000).
(vi) Salary paid in advance ₹ 3,000.

Vinod has the following transactions. Show accounting equation for the same:

(i) Commenced business with cash Rs.80,000.

(ii) Paid rent in advance Rs.1,000.

(iii) Purchased goods for cash Rs.30,000 and credit Rs.20,000.

(iv) Sold goods costing Rs.20,000 for Rs.30,000.

(v) Paid Salary Rs.800 and Salary outstanding Rs.200.

Prepare an accounting equation from the following:

(i) Kunal started business with cash 2,50,000 Rs

(ii) He purchased furniture for cash 35,000 Rs

(iii) He paid commission 2,000 Rs

(iv) He purchased goods on credit 40,000 Rs

(v) He sold goods (costing 20,000) for cash 26,000 Rs

Prepare accounting equation from the following
(i) Started business with cash Rs. 1,00,000 and machinery Rs. 80,000.
(ii) Purchased goods for cash Rs. 20,000 and on credit Rs. 30,000.
(iii) Sold goods for cash costing Rs. 10,000 and on credit costing Rs. 15,000 both at a profit of 20%
(iv) Cash withdrawn for personal use Rs. 10,000.
(v) Accrud interest Rs. 2,000.
(vi) Rent received in advance Rs. 1,000.
(vii) Interest on capital @ 10% (only on cash introduced as capital).
(viii) Interest on drawings charged @ 5% (Total drawings till now is Rs. 10,000).
(ix) Depreciation on machinery provided @ 10%.
(x) Rent paid in cash Rs. 1,000 and rent outstanding Rs. 500.
(xi) Prepaid insurance Rs. 1,000.
(xii) Bad debts written off Rs. 1,000.

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What will be the effect of the following on the accounting equation?(i) Harish started business with cash Rs.18,000.(ii) Purchased goods for cash Rs.5,000 and on credit Rs.2000.(iii) Sold goods for cash Rs. 4,000 (costing Rs.2,400)(iv) Rent paid Rs.1,000 and rent outstanding Rs.200

Assets = liabilities + capitalCash+stock = credirors + o/s rent +capital1)18000180002)−5000+7000=2000 +1800013000+7000=2000 +180003)4000−2400 160014000+4600=2000 +19,6004)−1000=200 −120016000+4600=2000 200+18400

What will be the effect of the following on the accounting equation?
(i) Harish started business with cash Rs.18,000.
(ii) Purchased goods for cash Rs.5,000 and on credit Rs.2000.
(iii) Sold goods for cash Rs. 4,000 (costing Rs.2,400)
(iv) Rent paid Rs.1,000 and rent outstanding Rs.200

Assets = liabilities + capital
Cash+stock = credirors + o/s rent +capital
1)
$18000$
$18000$
2)
$- 5000 + 7000 = 2000$ $+ 18000$
$13000 + 7000 = 2000$ $+ 18000$
3)
$4000 - 2400$ $1600$
$14000 + 4600 = 2000$ $+ 19, 600$
4)
$- 1000 = 200$ $- 1200$
$16000 + 4600 = 2000$ $200 + 18400$