Show the accounting equation on the basis of the
following transaction:
(a)
Udit started business with:
Rs
(i)
Cash
5,00,000
(ii)
Goods
1,00,000
(b)
Purchased building for cash
2,00,000
(c)
Purchased goods from Himani
50,000
(d)
Sold goods to Ashu (Cost Rs 25,000)
36,000
(e)
Paid insurance premium
3,000
(f)
Rent outstanding
5,000
(g)
Depreciation on building
8,000
(h)
Cash withdrawn for personal use
20,000
(i)
Rent received in advance
5,000
(j)
Cash paid to Himani on account
20,000
(k)
Cash received from Ashu
30,000
Show the accounting equation on the basis of the following transaction:
(a)
Udit started business with:
Rs
(i)
Cash
5,00,000
(ii)
Goods
1,00,000
(b)
Purchased building for cash
2,00,000
(c)
Purchased goods from Himani
50,000
(d)
Sold goods to Ashu (Cost Rs 25,000)
36,000
(e)
Paid insurance premium
3,000
(f)
Rent outstanding
5,000
(g)
Depreciation on building
8,000
(h)
Cash withdrawn for personal use
20,000
(i)
Rent received in advance
5,000
(j)
Cash paid to Himani on account
20,000
(k)
Cash received from Ashu
30,000
S.No. |
Explanation |
Assets |
= |
Liabilities |
+ |
Capital |
||||||||||
Cash |
+ |
Stock |
+ |
Building |
+ |
Debtors |
Creditors |
+ |
Outstanding Expenses |
+ |
Unaccrued Income |
|
|
|||
(a) |
Increase in cash |
5,00,000 |
|
|||||||||||||
Increase in stock |
1,00,000 |
|
||||||||||||||
Increase in capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,00,000 |
|
|
5,00,000 |
+ |
1,00,000 |
= |
NIL |
+ |
6,00,000 |
|||||||||
(b) |
Increase in building |
2,00,000 |
|
|||||||||||||
Decrease in cash |
(2,00,000) |
|
|
|
|
|
|
= |
|
|
|
|
|
|
|
|
|
3,00,000 |
+ |
1,00,000 |
+ |
2,00,000 |
= |
NIL |
|
+ |
6,00,000 |
||||||
(c) |
Increase in stock |
50,000 |
|
|||||||||||||
Increase in creditors |
= |
50,000 |
|
|||||||||||||
|
3,00,000 |
+ |
1,50,000 |
+ |
2,00,000 |
|
|
= |
50,000 |
|
|
|
|
+ |
6,00,000 |
|
(d) |
Increase in debtors |
36,000 |
|
|||||||||||||
Decrease in stock |
(25,000) |
|
||||||||||||||
Increase in capital (Profit) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,000 |
|
3,00,000 |
+ |
1,25,000 |
+ |
2,00,000 |
+ |
36,000 |
= |
50,000 |
+ |
6,11,000 |
||||||
(e) |
Decrease in cash |
(3,000) |
|
|||||||||||||
Decrease in capital (Expense) |
|
(3,000) |
||||||||||||||
2,97,000 |
+ |
1,25,000 |
+ |
2,00,000 |
+ |
36,000 |
= |
50,000 |
+ |
|
|
|
+ |
6,08,000 |
||
(f) |
Decrease in capital (Expense) |
|
5,000 |
|
||||||||||||
Increase in liabilities |
|
(5,000) |
||||||||||||||
2,97,000 |
+ |
1,25,000 |
+ |
2,00,000 |
+ |
36,000 |
= |
50,000 |
+ |
5,000 |
|
|
+ |
6,03,000 |
||
(g) |
Decrease in building |
|
(8,000) |
|
||||||||||||
Decrease in capital |
|
(8,000) |
||||||||||||||
2,97,000 |
+ |
1,25,000 |
+ |
1,92,000 |
+ |
36,000 |
= |
50,000 |
+ |
5,000 |
|
|
+ |
5,95,000 |
||
(h) |
Decrease in cash |
(20,000) |
|
|||||||||||||
Decrease in capital |
|
(20,000) |
||||||||||||||
2,97,000 |
+ |
1,25,000 |
+ |
1,92,000 |
+ |
36,000 |
= |
50,000 |
+ |
5,000 |
|
|
+ |
5,75,000 |
||
(i) |
Increase in cash |
5,000 |
|
|||||||||||||
Increase in liability |
|
|
|
|
|
|
|
|
|
|
|
|
5,000 |
|
|
|
2,82,000 |
+ |
1,25,000 |
+ |
1,92,000 |
+ |
36,000 |
= |
50,000 |
+ |
5,000 |
+ |
5,000 |
+ |
5,75,000 |
||
(j) |
Decrease in creditors |
|
(20,000) |
|
||||||||||||
Decrease in cash |
(20,000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,62,000 |
+ |
1,25,000 |
+ |
1,92,000 |
+ |
36,000 |
= |
30,000 |
+ |
5,000 |
+ |
5,000 |
+ |
5,75,000 |
||
(k) |
Increase in cash |
30,000 |
|
|||||||||||||
Decrease in debtors |
|
|
|
|
|
|
(30,000) |
|
|
|
|
|
|
|
||
|
2,92,000 |
+ |
1,25,000 |
+ |
1,92,000 |
+ |
6,000 |
= |
30,000 |
+ |
5,000 |
+ |
5,000 |
+ |
5,75,000 |
|