Transactions of M/s Vipin Traders are given below. Show the effects on Assets, Liabilities and Capital with the help of accounting Equation:

By admin -
Transactions of M/s Vipin Traders are given below.
Show the effects on Assets, Liabilities and Capital with the help of accounting Equation:

(a)Business started with cash₹ 1,25,000
(b)Purchased goods for cash₹ 50,000
(c)Purchase furniture from R.K. Furniture₹ 10,000
(d)Sold goods to Parul Traders (Costing ₹ 7,000 vide bill no. 567)₹ 9,000
(e)Paid cartage₹ 100
(f)Cash Paid to R.K. furniture in full settlement₹ 9,700
(g)Cash sales (costing ₹ 10,000)₹  12,000
(h)Rent received₹ 4,000
(i)Cash withdrew for personal use₹ 3,000




S.NoExplanationAsset+Asset+Asset+Asset=LiabilitiesCapital
  Cash+Stock+ Furniture+Debtors Creditors  
(a)Increase in cash1.25.000          
 Increase in capital          1,25,000
  1,25,000+     =NIL+1,25,000
(b)Increase in stock  50,000        
 Decrease in cash(50,000)      =   
  75,000+50,000    =NIL+1,25,000
(c)Increase in furniture    10,000  =   
 Increase in creditors       =10,000  
  75,000+50,000+10,000  =10,000+1,25,000
(d)Increase in debtors      9,000    
 Decrease in stock  (7,000)        
 Increase in capital (Profit)          2,000
  75,000+43,000+10,000+9,000=10,000+1,27,000
(e)Decrease in capital (Cartage Expenses)          (100)
 Decrease in cash(100)          
  74,900+43,000+10,000+9,000=10,000+1,26,900
(f)Decreases n creditors       =(10,000)  
 Decrease in cash(9,700)          
 Increase in capital (Discount received)          300
  65,200+43,000+10,000+9,000=NIL+1,27,200
(g)Increase in cash12,000          
 Decrease in stock  (10,000)        
 Increase in capital (Profit)          2,000
  77,200+33,000+10,000+9,000=NIL+1,29,200
(h)Increase in cash4,000          
 Increase in capital (Income)          4,000
  81,200+33,000+10,000+9,000=NIL+1,33,200
(i)Decrease in capital          (3,000)
 Decrease in cash(3,000)          
  78,200+33,000+10,000+9,000=NIL+1,30,200

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