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 …. |
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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 | ||