Show the effect of following transaction on the accounting equation:(a) Manoj started business with (i) Cash Rs. 2,30,000 (ii) Goods Rs. 1,00,000 (iii) Building Rs. 2,00,000

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Show the effect of following transaction on the accounting equation:
(a)Manoj started business with 
 (i) Cash₹ 2,30,000
 (ii) Goods₹ 1,00,000
 (iii) Building₹ 2,00,000
(b)He purchased goods for cash₹ 50,000
(c)He sold goods (costing ₹ 20,000)₹ 35,000
(d)He purchased goods from Rahul₹ 55,000
(e)He sold goods to Varun (Costing ₹ 52,000)₹ 60,000
(f)He paid cash to Rahul in full settlement₹ 53,000
(g)Salary paid by him₹ 20,000
(h)Received cash from Varun in full settlement₹ 59,000
(i)Rent outstanding₹ 3,000
(j)Prepaid Insurance₹ 2,000
(k)Commission received by him₹ 13,000
(l)Amount withdrawn by him for personal use₹ 20,000
(m)Depreciation charge on building₹ 10,000
(n)Fresh capital invested₹ 50,000
(o)Purchased goods from Rakhi₹ 6,000




S.NoExplanationAssetAssetAssetAssetAssetLiabilitiesLiabilitiesCapital
  Cash+Stock+Building+Debtors+Prepaid Expenses Creditors+Outstanding Expenses  
(a)Increase n cash, stock and building2,30,000+1,00,000+2,00,000          
 Increase in capital              5,30,000
  2,30,000+1,00,000+2,00,000    =   +5,30,000
(b)Increase in stock    50,000          
 Decrease in cash(50,000)              
  1,80,000+1,50,000+2,00,000    =   +5,30,000
(c)Increase n cash35,000              
 Decease in stock  (20,000)            
 Increase in capital (Profit)              15,000
  2,15,000+1,30,000+2,00,000+5,45,000
(d)Increase in stock               
 Increase in creditors               
  2,15,000+1,30,000+2,00,000    =55,000  +5,45,000
(e)Increase in debtors      60,000        
 Decease in debtors  (52,000)            
 Increase in capital (profit)              8,000
  2,15000+1,33,000+2,00,000+60,000  =55,000  +5,53,000
(f)Decrease in creditors         = (55,000)    
 Decrease in cash(53,000)              
 Increase in capital (Discount received)              2,000
  1,62,000+1,33,000+2,00,000+60,000  =NIL  +5,55,000
(g)Decrease in cash(20,000)              
 Decrease in capital              (20,000)
  1,42,000+1,33,000+2,00,000+60,000  =NIL   5,35,000
(h)Increase in cash59,000              
 Decrease in capital (Discount allowed)              (1,000)
 Decrease in debtors      60,000        
  2,01,000+1,33,000+2,00,000+NIL  =NIL   5,34,000
(i)Increase in outstanding Expenses            3,000  
 Decrease in capital (Expenses)              (3,000)
  2,01,000+1,33,000+2,00,000+NIL  =NIL +3,000  +5,31,000
(j)Decrease in prepaid expenses        2,000      
 Decrease in cash(2,000)              
  1,99,000+1,33,000+2,00,000+NIL +2,000 =NIL +3,000 + 5,31,000
(k)Increase in cash13,000              
 Increase in capital (Income)              13,000
  2,12,000+1,33,000+2,00,000+NIL +2,000 =NIL +3,000  +5,44,000
(l)Decrease in capital              (20,000)
 Decrease in cash(20,000)              
  2,12,000+1,33,000+2,00,000+NIL +2,000 =NIL +3,000  +5,24,000
(m)Decrease in capital              (10,000)
 Decrease in building    (10,000)          
  2,12,000+1,33,000+1,90,000+NIL +2,000 =NIL +3,000  +5,14,000
(n)Increase in cash50,000              
 Increase in capital              50,000
  2,42,000+1,33,000+1,90,000+NIL +2,000 =NIL +3,000  +5,64,000
(o)Increase in stock  10,000            
 Increase in creditors          10,000    
  2,42,000+1,43,000+1,90,000+NIL +2,000 =10,000 +3,000  +5,64,000



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