Show the accounting equation on the basis of the following transaction: (a) Udit started business with: (i) Cash ₹ 5,00,000 (ii) Goods ₹ 1,00,000 (b) Purchased building for cash ₹ 2,00,000 - Accountancy
Show the accounting equation on the basis of the following transaction:
| (a) | Udit started business with: | |
| (i) Cash | ₹ 5,00,000 | |
| (ii) Goods | ₹ 1,00,000 | |
| (b) | Purchased building for cash | ₹ 2,00,000 |
| (c) | Purchased goods from Himani | ₹ 50,000 |
| (d) | Sold goods to Ashu (Cost ₹ 25,000) | ₹ 36,000 |
| (e) | Paid insurance premium | ₹ 3,000 |
| (f) | Rent outstanding | ₹ 5,000 |
| (g) | Depreciation on building | ₹ 8,000 |
| (h) | Cash withdrawn for personal use | ₹ 20,000 |
| (i) | Rent received in advance | ₹ 5,000 |
| (j) | Cash paid to himani on account | ₹ 20,000 |
| (k) | Cash received from Ashu | ₹ 30,000 |
| S.No. | Explanation | Assets | Assets | Assets | Assets | Liabilities | Liabilities | Liabilities | Capital | |||||||
| Cash | + | Stock | + | Building | + | Debtors | = | Creditors | + | Outstanding Expenses | + | Unaccrued Income | ||||
| (a) | Increase in cash | 5,00,000 | ||||||||||||||
| Increase in stock | 1,00,000 | |||||||||||||||
| Increase in capital | 6,00,000 | |||||||||||||||
| 5,00,000 | + | 1,00,000 | = | NIL | + | + | 6,00,000 | |||||||||
| (b) | Increase in building | 2,00,000 | ||||||||||||||
| Decrease in cash | (2,00,000) | = | ||||||||||||||
| 3,00,000 | + | 1,00,000 | = | NIL | + | 6,00,000 | ||||||||||
| (c) | Increase in stock | 50,000 | 2,00,000 | |||||||||||||
| Increase in creditors | ||||||||||||||||
| 3,00,000 | + | 1,50,000 | + | 2,00,000 | = | 50,000 | + | + | 6,00,000 | |||||||
| (d) | Increase in debtors | 36,000 | ||||||||||||||
| Decrease in stock | (25,000) | |||||||||||||||
| Increase in capital (Profit) | 11,000 | |||||||||||||||
| 3,00,000 | + | 1,25,000 | + | 2,00,000 | 36,000 | = | 50,000 | + | 6,11,000 | |||||||
| (e) | Decrease in cash | (3,000) | ||||||||||||||
| Decrease in capital (Expenses) | (3.000) | |||||||||||||||
| 2,97,000 | + | 1,25,000 | + | 2,00,000 | + | 36,000 | = | 50,000 | + | 6,08,,000 | ||||||
| (f) | Decrease in capita; (Expenses) | 5,000 | ||||||||||||||
| Increase in liabilities | (5,000) | |||||||||||||||
| 2,97,000 | + | 1,25,000 | + | 2,00,000 | + | 36,000 | = | 50,000 | + | 5,000 | + | 6,03,000 | ||||
| (g) | Decrease in building | 8,000 | ||||||||||||||
| Decrease in capital | 8,000 | |||||||||||||||
| 2,97,000 | + | 1,25,000 | + | 1,92,000 | + | 36,000 | = | 50,000 | + | 5,000 | + | 5,95,000 | ||||
| (h) | Decrease in cash | (20,000) | ||||||||||||||
| Decrease in capital | (20,000) | |||||||||||||||
| 2,97,000 | + | 1,25,000 | + | 1,92,000 | + | 36,000 | = | 50,000 | + | 5,000 | + | 5,75,000 | ||||
| (i) | Increase in cash | 5,000 | ||||||||||||||
| Increase in liability | 5,000 | |||||||||||||||
| 2,82,000 | + | 1,25,000 | + | 1,92,000 | + | 36,000 | = | 50,000 | + | 5,000 | + | 5,000 | + | 5,75,000 | ||
| (j) | Decrease in creditors | (20,000) | ||||||||||||||
| Decrease in cash | (20,000) | |||||||||||||||
| 2,62,000 | + | 1,25,000 | + | 1,92,000 | + | 36,000 | = | 30,000 | + | 5,000 | + | 5,000 | + | 5,75,000 | ||
| (k) | Increase in cash | 30,000 | ||||||||||||||
| Decrease in debtors | (30,000) | |||||||||||||||
| 2,92,000 | + | 1,25,000 | + | 1,92,000 | + | 6,000 | = | 30,000 | + | 5,000 | + | 5,000 | + | 5,75,000 |
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