Prove that the accounting equation is satisfied in all the following transactions of Kama:
a. Commenced business with cash Rs. 5,00,000.
b. Rent paid Rs. 500 and Rent outstanding Rs. 100.
c. Purchased computer for cash Rs. 20,000.
d. Collected Rs. 6,000 as commission.
e. Purchased goods for cash Rs. 18,000 and credit Rs. 12,000.
f. Took goods of Rs. 10,000 from business for personal use.
g. Bought motor cycle for personal use Rs. 3,000.
Dear Student,
| S. No. | Transaction | Assets | = | Liabilities | + | Capital | |||||||||
| Cash | + | Stock | + | Computer | = | Creditors | + | Rent o/s | + | Capital | |||||
| (a) | Started business with cash | 5,00,000 | + | - | + | - | = | - | + | - | + | 5,00,000 | |||
| (b) | Rent paid and rent outstanding | (500) | + | - | + | - | = | - | + | 100 | + | (600) | |||
| 4,99,500 | + | - | + | - | = | - | + | 100 | + | 4,99,400 | |||||
| (c) | Purchased computer | (20,000) | + | - | + | 20,000 | = | - | + | - | + | - | |||
| 4,79,500 | + | - | + | 20,000 | = | - | + | 100 | + | 4,99,400 | |||||
| (d) | Collected commission | 6,000 | + | - | + | - | = | - | + | - | + | 6,000 | |||
| 4,85,500 | + | - | + | 20,000 | = | - | + | 100 | + | 5,05,400 | |||||
| (e) | Purchased goods on cash and credit | (18,000) | + | 30,000 | + | - | = | 12,000 | + | - | + | - | |||
| 4,67,500 | + | 30,000 | + | 20,000 | = | 12,000 | + | 100 | + | 5,05,400 | |||||
| (f) | Drew goods for personal use | - | + | (10,000) | + | - | = | - | + | - | + | (10,000) | |||
| 4,67,500 | + | 20,000 | + | 20,000 | = | 12,000 | + | 100 | + | 4,95,400 | |||||
| (g) | Bought motor cycle for personal use | (3,000) | + | - | + | - | = | - | + | - | + | (3,000) | |||
| 4,64,500 | + | 20,000 | + | 20,000 | = | 12,000 | + | 100 | + | 4,92,400 | |||||