started business with cash 150000 furniture rupees 80000 stock 50,000

1.	started business with cash 150000 furniture rupees 80000 stock 50,000 paid into Bank 25000 purchased goods 60000 out of 60% into cash sold goods to Himesh (costing 28000) for 30000 rent paid 5000 prepaid insurance 2000 bought typewriter 15000 bought refrigerator for personal use 20000
Answer» Explanation: ACCOUNTING EQUATION S. No. TRANSACTION Assets = Liabilities + Capital Cash + Typewriter + Stock + Debtors = Creditors (i) Started BUSINESS with cash +1,20,000 + 1,20,000 1,20,000 = 1,20,000 (ii) Purchased typewriter for office use –8,000 + 8,000 1,12,000 + 8,000 = 1,20,000 (iii) Purchased goods for cash –50,000 +50,000 62,000 + 8,000 + 50,000 = 1,20,000 (iv) Purchased goods on credit +40,000 40,000 62,000 + 8,000 + 90,000 = 40,000 + 1,20,000 (v) Goods costing Rs 60,000 sold for Rs 80,000 on credit –60,000 +80,000 +20,000 (Profit) 62,000 + 8,000 + 30,000 + 80,000 = 40,000 + 1,40,000 (vi) PAID rent Rs 1,500 and SALARIES Rs 2,000 –3,500 –3,500 (Expenses) 58,500 + 8,000 + 30,000 + 80,000 = 40,000 + 1,36,500 (vii) Commission received +800 +800 (Income) 59,300 + 8,000 + 30,000 + 80,000 = 40,000 + 1,37,300 (viii) WITHDREW cash for private use –5,000 –5,000 (Drawings) 54,300 + 8,000 + 30,000 + 80,000 = 40,000 + 1,32,300

started business with cash 150000 furniture rupees 80000 stock 50,000 paid into Bank 25000 purchased goods 60000 out of 60% into cash sold goods to Himesh (costing 28000) for 30000 rent paid 5000 prepaid insurance 2000 bought typewriter 15000 bought refrigerator for personal use 20000

Answer»

Explanation:

ACCOUNTING EQUATION

S. No. TRANSACTION Assets = Liabilities + Capital

Cash + Typewriter + Stock + Debtors = Creditors

(i) Started BUSINESS with cash +1,20,000 + 1,20,000

1,20,000 = 1,20,000

(ii) Purchased typewriter for office use –8,000 + 8,000

1,12,000 + 8,000 = 1,20,000

(iii) Purchased goods for cash –50,000 +50,000

62,000 + 8,000 + 50,000 = 1,20,000

(iv) Purchased goods on credit +40,000 40,000

62,000 + 8,000 + 90,000 = 40,000 + 1,20,000

(v) Goods costing Rs 60,000 sold for Rs 80,000 on credit –60,000 +80,000 +20,000 (Profit)

62,000 + 8,000 + 30,000 + 80,000 = 40,000 + 1,40,000

(vi) PAID rent Rs 1,500 and SALARIES Rs 2,000 –3,500 –3,500 (Expenses)

58,500 + 8,000 + 30,000 + 80,000 = 40,000 + 1,36,500

(vii) Commission received +800 +800 (Income)

59,300 + 8,000 + 30,000 + 80,000 = 40,000 + 1,37,300

(viii) WITHDREW cash for private use –5,000 –5,000 (Drawings)

54,300 + 8,000 + 30,000 + 80,000 = 40,000 + 1,32,300