Prepare accounting equation from the foolowing:-

1. Sandeep started business with cash Rs. 1,00,000

2.purcshased furniture for cash Rs. 5,000

3. purchased good for Rs. 20,000

4. purchased good on credit Rs. 36,000

5. paid for rent Rs. 700

6. goods costing s. 40,000 sold at a profit of 20% for cash

 Accounting Equation

S. No.

Transaction

Assets

=

Liabilities

+

Capital

Cash

 

 

+

Stock

+

Furniture

 

 

=

Creditors

 

 

+

Capital

(i)

Sandeep started business with Rs. 1,00,000

1,00,000

 

 

 +   

0

+

  0 

 

 

=

0

 

 

+

1,00,000

 

  New Equation 

1,00,000

 

 

+

  0 

+

  0

 

 

=

  0

 

 

  +

1,00,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(ii)

Purchased furniture for cash for Rs. 5,000

(-) 5,000

 

 

+

  0

+

 5,000

 

 

=

  0

 

 

  +

  0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  New Equation

95,000

 

 

  +

0

+

5,000

 

 

=

0

 

 

 +

1,00,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(iii)

Purchased goods for Rs. 20,000

(-)20,000

 

 

+

20,000

  0

 

 

=

  0

 

 

 + 

  0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  New Equation

75,000

 

 

  + 

20,000

+

  5,000

 

 

=

0

 

 

  +

1,00,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(iv)

Purchased goods on credit Rs. 36,000

  0

 

 

+

36,000

+

  0

 

 

=

36,000

 

 

 +

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   New Equation

75,000

 

 

+

56,000

+

  5,000

 

 

=

36,000

 

 

+

1,00,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(v)

Paid for rent Rs.700

(-) 700

 

 

+

0

+

0

 

 

=

0

 

 

  (-)

700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  (vi)

   New Equation 

Goods costing 40,000 sold at a profit of 20% for cash . 

74,300

48,000

 

 

+

  (-)

56,000

40,000

+

+

5,000

  0

 

 

=

=

36,000

  0

 

 

+

  +

99,300

  8,000

 

  Final Equation

1,22,300

 

 

+

16,000

+

5,000

 

 

=

36,000

 

 

 +

1,07,300

  • 40

please answer this i want very urgently as i hav exam tomorrow...........

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