1. Ram started a business with Rs. 50,000 cash. He purchased goods on credit and for cash, and furniture for cash. He paid rent and received interest. He sold goods on credit and paid his creditor.
2. Sunil started a business with Rs. 150,000 cash. He purchased a building and furniture for Rs. 100,000. He purchased goods on credit and sold goods on credit. He received rent and interest.
3. Anwar started a business with Rs. 20,000 cash, Rs. 12,000 goods, and Rs. 4,000 machinery. He purchased and sold goods for cash and credit. He paid debts and salaries. He received rent and had
1. Ram started a business with Rs. 50,000 cash. He purchased goods on credit and for cash, and furniture for cash. He paid rent and received interest. He sold goods on credit and paid his creditor.
2. Sunil started a business with Rs. 150,000 cash. He purchased a building and furniture for Rs. 100,000. He purchased goods on credit and sold goods on credit. He received rent and interest.
3. Anwar started a business with Rs. 20,000 cash, Rs. 12,000 goods, and Rs. 4,000 machinery. He purchased and sold goods for cash and credit. He paid debts and salaries. He received rent and had
1. Ram started a business with Rs. 50,000 cash. He purchased goods on credit and for cash, and furniture for cash. He paid rent and received interest. He sold goods on credit and paid his creditor.
2. Sunil started a business with Rs. 150,000 cash. He purchased a building and furniture for Rs. 100,000. He purchased goods on credit and sold goods on credit. He received rent and interest.
3. Anwar started a business with Rs. 20,000 cash, Rs. 12,000 goods, and Rs. 4,000 machinery. He purchased and sold goods for cash and credit. He paid debts and salaries. He received rent and had
1. Ram started a business with Rs. 50,000 cash. He purchased goods on credit and for cash, and furniture for cash. He paid rent and received interest. He sold goods on credit and paid his creditor.
2. Sunil started a business with Rs. 150,000 cash. He purchased a building and furniture for Rs. 100,000. He purchased goods on credit and sold goods on credit. He received rent and interest.
3. Anwar started a business with Rs. 20,000 cash, Rs. 12,000 goods, and Rs. 4,000 machinery. He purchased and sold goods for cash and credit. He paid debts and salaries. He received rent and had
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Exercises on Accounting Equation
Show the Accounting Equation on the basis of following transactions:
(Rs.) Set 1 1. Ram Started business with cash 50000 2. Purchased goods on redit from !" #000 $. Purchased goods for ash 1000 #. Purchased %urniture for ash 500 5. Paid Rent 200 &. Recei'ed !nterest 100 (. Sold goods on redit to )!"*cost Rs 500+ (00 ,. Paid to !" #00 -. Paid Salaries 200 10. Rent outstanding 200 Set 2 1. ommenced .usiness with cash 50000 2. Purchased goods for ash Rs 20000 and on redit from !" Rs $0000 50000 $. Sold goods for cash*cost Rs $0000+ #0000 #. Rent Paid 500 5. Rent outstanding 100 &. .ought %urniture on credit from %urniturewala 5000 (. Purchased om/uter for cash 20000 ,. Paid !nterest 200 -. Recei'ed !nterest 1000 10. Sold 0oods on cash*cost Rs 5000+ (500 Set 3 1. Sunil started business with cash 150000 2. 1e /urchased a building and furniture for 100000 $. 1e /urchased goods from Ram on credit 50000 #. 1e /aid carriage 500 5. 1e sold to Sh2am on credit goods costing Rs &000 -000 &. Recei'ed rent from tenants 1000 (. Recei'ed refundable securit2 de/osit from tenants Rs 10000 ,. Purchased stationer2 for cash 100 -. !n'ested in shares */ersonal in'estment made out of /ersonal funds+ 50000 10. Recei'ed interest in cash 200 11. !ntroduced fresh ca/ital 25000 12. 0oods destro2ed b2 fire 500 Set 4 1. Anwar started business with ash 20000 0oods 12000 3achine ,000 2. Purchased 0oods 5000 $. Sold 0oods *costing Rs 2000+ for 5000 #. Purchased 0oods on redit from 4 "td (000 5. Pa2ment made to 4 "td in full settlement *5o .ad )ebts+ &-00 &. Sold goods on credit *costing Rs 5#00+ to 6 "td &000 (. Pa2ment recei'ed from 6 "td 5,00 ,. Salaries Paid #00 -. 7ages 8utstanding #00 10. Pre/aid !nsurance 100 11. Rent recei'ed $00 12. )e/reciate 3achiner2 b2 109 /.a. for 1 3onth Set 5 1. !ntroduced a/ital of Rs ,00000 as cash and Rs 50000 as Stoc: 3aterial. 2. Purchased Plant for Rs $00000 from Plantco b2 /a2ing 15000 in cash and balance after 1 month. $. )e/osited Rs &00000 into the S.! A;c #0-5. #. Purchased office furniture for Rs 100000 and /a2ment made b2 heque. 5. Purchased Stoc: 3aterial worth Rs ,0000 for cash and Rs $5000 on credit from Ala "td. &. 0oods costing Rs #5000 were sold for Rs &0000 on cash basis. (. 0oods costing Rs ,0000 were sold for Rs 125000 on credit to <ransco "td. ,. Pa2ment made to Ala "td Rs $5000. -. heque Recei'ed from <ransco "td. 10. Salar2 /aid Rs 5000. 11. !nterest Recei'ed Rs 10000. Set 6 1. =erma de/osited Rs 200000 from his sa'ings in a ban: account which is in the name of the firm. 2. Purchased office furniture for Rs 5000 from %urniture 3art on credit. $. .illed clients for /rofessional ser'ices rendered> Rs $0000. #. Paid in cash Rs 2000 to office Assistant as her salar2 for the month. 5. Paid office rent in cash Rs 1500. &. Recei'ed /rofessional fees from clients not billed earlier> Rs 5000. (. Paid electricit2 e?/enses> Rs #00 and tele/hone charges Rs &00. ,. ollected /a2ments from clients billed earlier> Rs -000. lients billed for Rs 5000 will not /a2. -. !nterest /aid Rs 2000. 10. Paid Rs #000 to it2 %urniture 3art. Set 7 1. Stoc:holders in'ested Rs 200>000 cash> recei'ing common stoc: in e?change. 2. Paid Rs ,000 cash for A/ril office rent. $. Purchased office equi/ment for Rs 25>000 cash. #. !ncurred Rs $000 of ad'ertising costs in The Times of India, on account. 5. Paid Rs $500 cash for office stationar2. &. Earned Rs 52>000 for ser'ices rendered: ash of Rs $0>000 is recei'ed from customers> and the balance of Rs 22>000 is billed to customers on account. (. Paid Rs 5000 cash di'idend. ,. Paid The Times of India amount due in transaction *#+. -. Paid em/lo2ees@ salaries Rs (>500. 10. Rs 15>000 recei'ed from customers who ha'e /re'iousl2 been billed in transaction *&+. Set 8 1. RaAan de/osited Rs $0000 in the com/an2Bs ban: account in e?change for $000 shares of Rs 10 each in the share ca/ital of the com/an2. 2. Purchased 8ffice stationar2 for cash> Rs $000. $. Recei'ed Re'enue for ser'ices> Rs 25000. #. <oo: a ban: loan> Rs $0000. 5. .illed customers for ser'ices> Rs (000. &. Paid assistantsB salar2> Rs &000> office rent> Rs #000 and =an hire charges> Rs ,000 . (. Re/aid a /art of the .an: "oan> Rs 5000. ,. Purchased a deli'er2 'an for ash> Rs $5000. -. .illed and cash recei'ed for ser'ices /ro'ided> Rs $5000. 10. )eclared and /aid di'idends> Rs 5000. Set 9 1. !ssued 100000 shares of Rs 10 each for cash. !ssue subscribed and all mone2 dul2 recei'ed. 2. !ssued 15000 shares of Rs 10 each for Equi/ment Rs 150000. $. <oo: a Short <erm "oan from S.! Rs 100000 C 1,9 /.a. #. Purchased Plant for Rs $0000.Paid in ash. 5. Paid .an: !nterest for 1 3onth. &. )e/reciate Equi/ment C 109 /.a. for 1 3onth and Plant 159 /.a. for 1 3onth.