Prepare accounting equation on the basis of the following:
(a) Harsha started business with cash Rs 2,00,000
(b) Purchased goods from Naman for cash Rs 40,000
(c) Sold goods to Bhanu costing Rs 10,000/- Rs 12,000
(d) Bought furniture on credit Rs 7,000
|
S.No. |
Explanation |
Assets |
= |
Liabilities |
+ |
Capital |
||||||
|
Cash |
+ |
Stock |
+ |
Debtors |
+ |
Furniture |
Creditors |
|||||
|
(a) |
Increase in cash |
2,00,000 |
= |
|
||||||||
|
Increase in capital |
|
|
|
|
|
|
|
|
|
|
2,00,000 |
|
|
|
2,00,000 |
= |
NIL |
+ |
2,00,000 |
|||||||
|
(b) |
Increase in stock |
40,000 |
|
|||||||||
|
Decrease in cash |
(40,000) |
|
|
|
|
|
|
|
|
|
||
|
|
1,60,000 |
+ |
40,000 |
= |
NIL |
+ |
2,00,000 |
|||||
|
(c) |
Increase in debtors |
12,000 |
|
|||||||||
|
Decrease in stock |
(10,000) |
|
||||||||||
|
Profit |
|
|
|
|
|
|
|
|
|
2,000 |
||
|
|
1,60,000 |
+ |
30,000 |
+ |
12,000 |
= |
NIL |
2,02,000 |
||||
|
(d) |
Increase in furniture |
7,000 |
|
|||||||||
|
|
Increase in creditors |
|
|
|
|
|
|
|
|
7,000 |
|
|
|
|
|
1,60,000 |
+ |
30,000 |
+ |
12,000 |
+ |
7,000 |
= |
7,000 |
+ |
2,02,000 |