1.

Raghunath had the following transactions in an accounting year:(i) Commenced business with cash ₹ 50,000.(ii) Paid into bank ₹ 10,000.(iii) Purchased goods for cash ₹ 20,000 and credit ₹ 30,000.(iv) Sold goods for cash ₹ 40,000 costing ₹ 30,000.(v) Rent paid ₹ 500.(vi) Rent outstanding ₹ 100.(vii) Bought furniture ₹ 5,000 on credit.(viii) Bought refrigerator for personal use ₹ 5,000.(ix) Purchased motorcycle for cash ₹ 20,000. Create an Accounting Equation to show the effect of the above and also show his Balance Sheet.

Answer» Raghunath had the following transactions in an accounting year:

(i) Commenced business with cash ₹ 50,000.

(ii) Paid into bank ₹ 10,000.

(iii) Purchased goods for cash ₹ 20,000 and credit ₹ 30,000.

(iv) Sold goods for cash ₹ 40,000 costing ₹ 30,000.

(v) Rent paid ₹ 500.

(vi) Rent outstanding ₹ 100.

(vii) Bought furniture ₹ 5,000 on credit.

(viii) Bought refrigerator for personal use ₹ 5,000.

(ix) Purchased motorcycle for cash ₹ 20,000.

Create an Accounting Equation to show the effect of the above and also show his Balance Sheet.


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