Accounting Equation Examples By THE SIDDIQUI ACADEMY

 Q.1 Show an Accounting Equation for the following transactions:

(i) D. Mahapatra commenced business with cash ₹ 50,000 and ₹ 1,00,000 by cheque; goods ₹ 60,000; machinery ₹ 1,00,000 and furniture ₹ 50,000.

(ii) 1/3rd of above goods sold at a profit of 10% on cost and half of the payment is received in cash.

(iii) Depreciation on machinery provided @ 10%.

(iv) Cash withdrawn for personal use ₹ 10,000.

(v) Interest on drawings charged @ 5%.

(vi) Goods Sold to Gupta for ₹ 10,000 and received a Bill Receivable for the same amount for 3 months.

(vii) Received ₹ 10,000 from Gupta against the Bills Receivable on its maturity.

The solution for this question is as follows:




Q.2 Show the effect of the following transactions and also prepare a Balance Sheet:

(i) Started business with cash ₹ 60,000.

(ii) Rent received ₹ 2,000.

(iii) Accrued interest ₹ 500.

(iv) Commission received in advance ₹ 1,000.

(v) Amount withdrawn ₹ 5,000.

The solution for this question is as follows:


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ANAND VIHAR PHASE 3

NEW DELHI

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