Mohit has the following transactions, prepare accounting equation:
| (a) | Business started with cash | ₹ 1,75,000 |
| (b) | Purchased goods from Rohit | ₹ 50,000 |
| (c) | Sales 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 |
| S.No | Explanation | Asset | Asset | Asset | Asset | Liabilities | + | Capital | ||||
| Cash | + | Stock | + | Debtors | + | Furniture | = | Creditors | ||||
| (a) | Increase in cash | 1,75,000 | ||||||||||
| Increase in capital | 1,75,000 | |||||||||||
| 1,75,000 | = | NIL | + | 1,75,000 | ||||||||
| (b) | Increase in stock | 50,000 | ||||||||||
| Increase in creditors (Rohit) | = | 50,000 | + | 1,75,000 | ||||||||
| 1,75,000 | + | 50,000 | = | 50,000 | + | 1,75,000 | ||||||
| (c) | Increase in debtors (Manish) | 20,000 | ||||||||||
| Decrease in stock | (17,500) | |||||||||||
| Increase in capital (Profit) | 2,500 | |||||||||||
| 1,75,000 | + | 32,500 | + | 20,000 | = | 50,000 | + | 1,77,500 | ||||
| (d) | Increase in furniture | 10,000 | ||||||||||
| Decrease in cash | (10,000) |
0 Comments