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Accounting Equation

Sandeep started a business with Rs. 100,000 cash. He purchased furniture for Rs. 5,000 cash and goods for Rs. 20,000 and Rs. 36,000 cash and credit respectively. He sold goods costing Rs. 40,000 that resulted in a 20% profit and paid Rs. 700 rent. Manu started a business with Rs. 50,000 cash. He purchased furniture for Rs. 500, goods for Rs. 4,000 credit and sold goods costing Rs. 500 for Rs. 700. He received Rs. 200 rent and purchased goods for Rs. 1,000 cash. He withdrew Rs. 700 for personal use and paid creditors Rs. 400 and salaries Rs. 200

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Manish Ranjan
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173 views2 pages

Accounting Equation

Sandeep started a business with Rs. 100,000 cash. He purchased furniture for Rs. 5,000 cash and goods for Rs. 20,000 and Rs. 36,000 cash and credit respectively. He sold goods costing Rs. 40,000 that resulted in a 20% profit and paid Rs. 700 rent. Manu started a business with Rs. 50,000 cash. He purchased furniture for Rs. 500, goods for Rs. 4,000 credit and sold goods costing Rs. 500 for Rs. 700. He received Rs. 200 rent and purchased goods for Rs. 1,000 cash. He withdrew Rs. 700 for personal use and paid creditors Rs. 400 and salaries Rs. 200

Uploaded by

Manish Ranjan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Prepare Accounting Equation from the following:-

(₹)
1. Sandeep started business with Cash 1,00,000
2. Purchased furniture for cash 5,000
3. Purchased goods for cash 20,000
4. Purchased goods on credit 36,000
5. Paid for rent 700
6. Goods costing ₹ 40,000 sold at a profit of 20% for cash

Show the Accounting Equation on the basis of the following and present a balance sheet on
the last new equation balances:

(₹)
(i) Manu started business with cash 50,000
(ii) Bought furniture for 500
(iii) Purchased goods on credit 4,000
(iv) Sold goods on cash (cost ₹ 500) for 700
(v) Received rent 200
(vi) Purchased goods for cash 1,000
(vii) Withdrew for personal use 700
(viii) Paid to creditors 400
(ix) Paid for salaries 200

Prove that the Accounting Equation is satisfied in all the following transactions of Rajaram.
Also prepare a Balance Sheet:−
1. Started business with Cash ₹ 1,20,000.
2. Purchased a typewriter for Cash for ₹ 8,000 for office use.
3. Purchased goods for ₹ 50,000 for cash.
4. Purchased goods for ₹ 40,000 on credit.
5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit.
6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000.
7. Received ₹ 800 for Commission.
8. Withdrew for private use ₹ 5,000 in cash.

Prepare Accounting Equation from the following:


(a) Started business with Cash ₹ 2,00,000.
(b) Purchased goods for Cash ₹ 60,000 and on Credit ₹ 1,50,000.
(c) Sold goods for Cash costing ₹ 40,000 at a profit of 20% and on Credit costing ₹
72,000 at a profit of 25%.
(d) Paid for Rent ₹ 5,000.

Prepare Accounting Equation from the following:

(₹)
(a) Kunal started business with cash 2,50,000
(b) He purchased furniture for cash 35,000
(c) He paid commission 2,000
(d) He purchased goods on credit 40,000
(e) He sold goods (Costing ₹ 20,000) for cash 26,000

Mohit has the following transactions, prepare Accounting Equation:

(₹)
(a) Business started with cash 1,75,000
(b) Purchased goods from Rohit 50,000
(c) Sold goods on credit to Manish (costing ₹ 17,500) 20,000
(d) Purchased furniture for office use 10,000
(e) Cash paid to Rohit in full settlement 48,500
(f) Cash received from Manish 20,000
(g) Rent paid 1,000
(h) Cash withdrew for personal use 3,000

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