Mohit has the following transactions, prepare accounting
equation:
Rs
(a)
Business started with cash
1,75,000
(b)
Purchased goods from Rohit
50,000
(c)
Sales goods on credit to Manish (Costing Rs 17,500)
20,000
(d)
Purchased furniture for office use
10,000
(e)
Cash paid to Rohit in full settlement
48,500
(f)
Cash received from Manish
20,000
(g)
Rent paid
1,000
(h)
Cash withdrew for personal use
3,000
Mohit has the following transactions, prepare accounting equation:
Rs
(a)
Business started with cash
1,75,000
(b)
Purchased goods from Rohit
50,000
(c)
Sales goods on credit to Manish (Costing Rs 17,500)
20,000
(d)
Purchased furniture for office use
10,000
(e)
Cash paid to Rohit in full settlement
48,500
(f)
Cash received from Manish
20,000
(g)
Rent paid
1,000
(h)
Cash withdrew for personal use
3,000
|
S.No. |
Explanation |
Assets |
|
Liabilities |
+ |
Capital |
||||||
|
Cash |
+ |
Stock |
+ |
Debtors |
|
Furniture |
= |
Creditors |
||||
|
(a) |
Increase in cash |
1,75,000 |
|
|||||||||
|
Increase in capital |
|
|
|
|
|
|
|
|
|
|
1,75,000 |
|
|
|
1,75,000 |
= |
NIL |
+ |
1,75,000 |
|||||||
|
(b) |
Increase in stock |
50,000 |
|
|||||||||
|
Increase in creditors (Rohit) |
|
|
|
|
|
|
|
= |
50,000 |
+ |
1,75,000 |
|
|
|
1,75,000 |
+ |
50,000 |
= |
50,000 |
+ |
1,75,000 |
|||||
|
(c) |
Increase in debtors (Manish) |
20,000 |
|
|||||||||
|
Decrease in stock |
(17,500) |
|
||||||||||
|
Increase in capital (Profit) |
|
|
|
|
|
|
|
|
2,500 |
|||
|
|
1,75,000 |
+ |
32,500 |
+ |
20,000 |
= |
50,000 |
+ |
1,77,500 |
|||
|
(d) |
Increase in furniture |
10,000 |
|
|||||||||
|
Decrease in cash |
(10,000) |
|
|
|
|
|
|
|
|
|||
|
1,65,000 |
+ |
32,500 |
+ |
20,000 |
+ |
10,000 |
= |
50,000 |
+ |
1,77,500 |
||
|
(e) |
Decrease in creditors (Rohit) |
|
(50,000) |
|
||||||||
|
Decrease in dash |
(48,500) |
|
||||||||||
|
Increase in capital (Discount received) |
|
|
|
|
|
|
|
|
1,500 |
|||
|
1,16,500 |
+ |
32,500 |
+ |
20,000 |
+ |
10,000 |
= |
NIL |
+ |
1,79,000 |
||
|
(f) |
Increase in cash |
20,000 |
|
|||||||||
|
Decrease in debtors (Manish) |
(20,000) |
|
|
|||||||||
|
1,36,500 |
+ |
32,500 |
+ |
NIL |
+ |
10,000 |
= |
NIL |
+ |
1,79,000 |
||
|
(g) |
Decrease in capital (Expense) |
|
(1,000) |
|||||||||
|
Decrease in cash |
1,000 |
|
|
|
|
|
|
|
|
|||
|
1,35,500 |
+ |
32,500 |
+ |
NIL |
+ |
10,000 |
= |
NIL |
+ |
1,78,000 |
||
|
(h) |
Decrease in capital (Drawings) |
|
(3,000) |
|||||||||
|
Decrease in cash |
(3,000) |
|
|
|
|
|
|
|
|
|||
|
1,32,500 |
+ |
32,500 |
+ |
NIL |
+ |
10,000 |
= |
NIL |
+ |
1,75,000 |
||