Prepare Accounting Equation from the following and also prepare a Balance Sheet :-
1. Raghu started business with cash Rs. 1, 50, 000
2. Bought goods for cash Rs. 80, 000 and on credit for Rs. 40, 000.
3. Goods costing Rs. 75, 000 sold at a profit of 100/3%. Half the payment received in cash.
4. Goods costing Rs. 10, 000 sold for Rs. 12, 000 on credit.
5. Paid for Rent Rs. 2, 000 and for salaries Rs. 4, 000
6. Goods costing Rs. 20, 000 sold for Rs 18, 500 for Cash.

S. No. Transaction Assets = Liabilities + Capital
Cash + Stock + Debtors = Creditors    
(i) Raghu started business with cash 1,50,000         =     1,50,000
    1,50,000         =     1,50,000
(ii) Bought goods for cash Rs 80,000 and on credit Rs 40,000 (80,000) + 1,20,000     = 40,000    
  New Balance 70,000 + 1,20,000     = 40,000 + 1,50,000
(iii) Goods costing Rs 75,000 were sold at a profit of 33.33% 1,00,000 + (75,000)     =   + 25,000
  New Balance 1,70,000 + 45,000     = 40,000 + 1,75,000
(iv) Goods costing Rs 10,000 sold for Rs 12,000     (10,000) + 12,000 =   + 2,000
    1,70,000 + 35,000 + 12,000 = 40,000 + 1,77,000
(v) Paid for Rent and Salaries (6,000)         =     (6,000)
    1,64,000 + 35,000 + 12,000 = 40,000 + 1,71,000
(vi) Goods of Rs 20,000 sold for Rs 18,500 18,500 + (20,000)     =     (1,500)
    1,82,500 + 15,000 + 12,000 = 40,000 + 1,69,500
                         
                           
 
Balance Sheet
as on January ….
Liabilities Amount
(Rs)
Assets Amount (Rs)
Creditors 40,000 Cash 1,82,500
Capital 1,69,500 Stock 15,000
    Debtors 12,000
       
  2,09,500   2,09,500
       
 

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 particulars                                              assets                                        =                       liabilities                            +    capital
                                                                  cash + stock        +                 =   creditors   +
 1.business started wit cash                     1,50,000+   0                           =      0            +                                            +  1,50,000
 2.bought goods for cash                           - 80,000+80,000                     =      0           +
 3.bought goods on credit                                 0    +40,000                     =   40,000      +
carry on like this....
add new columns as new entries come..
hope it helped a bit...........pls like
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