Accounting Equations
ACCOUNTING EQUATIONS 1. Show the accounting equation for the following transaction (i) Ram started business with cash 20000, stock 50000, building 30000 (ii) Sold goods to Amit for cash 20000 and credit 15000 (iii) Paid rent 500 and rent outstanding 150 (iv) Sold goods costing 12000 for Rs. 15000 (v) Accrued commission 2000 (vi) Furniture purchased from Lalit 12000 and paid 3000 in cash (vii) Received from Amit 13500 in full settlement (viii) Insurance paid 15000 for 15 months (ix) Commission received in advance 400 (x) Cash deposited into saving bank a/c 7000 (xi) Building purchased and paid by cheque 5000 (xii) Paid to Lalit Rs.8500 in full settlement 2. Ashita began a business as wholesaler of gloves, scarves and caps. The following events have occurred: (i) On January 1 2003, she invested Rs.1,50,000 in cash in her new business called “Winter Gifts” (ii) Acquired Rs.20,000 goods for cash. (iii) A large retail store in Chandigarh, which she hoped would be a big customer, closed its business. (iv) Gloves that cost Rs.300 in transaction (ii) were of wrong style. She returned them and obtained a full cash refund. (v) She sold her personal savings certificates for Rs.4,000 to acquire machinery for “Winter Gifts”. (vi) She paid two months’ rent in advance for her office Rs.5,000
Show the effect of the above transactions on the accounting equation. 3. A summary of the transactions of the business of Suresh are as follows:- Please explain the same in form of equations.
2008
March 1) Suresh began business with Rs. 50,000 in cash. 2) Took a loan of Rs. 20,000 from Manish. 3) Purchased for cash, two computers each costing Rs. 29,000. 4) Purchased supplies of floppy disks and stationery for Rs. 6,000/- on credit. 19) Received a price of Rs. 12,000 in cash for software services.
21) Paid creditor for supplies of Rs.
Show the effect of the above transactions on the accounting equation. 3. A summary of the transactions of the business of Suresh are as follows:- Please explain the same in form of equations.
2008
March 1) Suresh began business with Rs. 50,000 in cash. 2) Took a loan of Rs. 20,000 from Manish. 3) Purchased for cash, two computers each costing Rs. 29,000. 4) Purchased supplies of floppy disks and stationery for Rs. 6,000/- on credit. 19) Received a price of Rs. 12,000 in cash for software services.
21) Paid creditor for supplies of Rs.