Arvind had the following transactions. Use Accounting Equation to show their effect on his assets, liabilities and capital:

1. Invested Rs 15000 in cash as capital.

2. Purchase furniture for cash Rs 7500.

3. Purchased a building for Rs 15000, giving Rs 5000 in cash and the balance through a loan.

4. Sold furniture costing Rs 1000 for Rs 1500.

5. Purchased an old car for Rs 2800 cash.

6. Received cash as rent Rs 3600.

7. Paid cash Rs 500 for loan and Rs 300 for interest.

8. Paid cash for household expenses Rs 300.

9. Received cash for dividend on securities Rs 200.

S. No.

Transactions

Assets

=

Liabilities

+

Capital

Cash

(Rs)

+

Furniture

(Rs)

+

Building

(Rs)

+

Old Car

(Rs)

(Loan)

(i)

Invested Rs 15,000 in cash as Capital

15,000

15,000

(ii)

Purchased Furniture for Cash

(7,500)

7,500

7,500

+

7,500

=

15,000

(iii)

Purchased Building for Rs 15,000, giving Rs 5,000 in cash and balance through loan

(5,000)

+

+

15,000

10,000

2,500

+

7,500

+

15,000

=

10,000

+

15,000

(iv)

Sold Furniture costing Rs 1,000 for Rs 1,500

1,500

(1,000)

500

(Profit)

4,000

+

6,500

+

15,000

=

10,000

+

15,500

(v)

Purchased an Old Car for Cash

(2,800)

2,800

1,200

+

6,500

+

15,000

+

2,800

=

10,000

+

15,500

(vi)

Received cash as Rent

3,600

3,600

4,800

+

6,500

+

15,000

+

2,800

=

10,000

+

19,100

(vii)

Paid cash for Loan and Interest

(800)

(500)

(300)

4,000

+

6,500

+

15,000

+

2,800

=

9,500

+

18,800

(viii)

Paid Cash for Household Expenses

(300)

(300)

3,700

+

6,500

+

15,000

+

2,800

=

9,500

+

18,500

(ix)

Received Cash for Dividend

200

200

3,900

+

6,500

+

15,000

+

2,800

=

9,500

+

18,700