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Question 1:

What will be effect of the following on the Accounting Equation?
(i) Started business with cash ₹ 45,000
(ii) Opened a Bank Account with a deposit of ₹ 4,500
(iii) Bought goods from M\s . Sun & Co. for ₹11,200

 S. No. Transactions Assets = Liabilities + Capital Cash (Rs) + Bank (Rs) + Stock (Rs) = Creditors (Rs) (Rs) (i) Started business with cash 45,000 = 45,000 45,000 = 45,000 (ii) Opened a Bank Account with a deposit – 4,500 + 4,500 = 40,500 + 4,500 = 45,000 (iii) Bought goods from M/s. Sun & Co. 11,200 = 11,200 40,500 + 4,500 + 11,200 = 11,200 + 45,000

 Total Assets = Cash + Bank + Stock = 40,500 + 4,500 + 11,200 = Rs 56,200 Liabilities = 11,200 Capital = 45,000

Question 2:

Show the Accounting Equation for the following transactions:

 ₹ (i) Gopinath Started business with cash 25,000 (ii) Purchased goods from Shyam 10,000 (iii) Sold goods to Sohan costing ₹ 1,800 1,500 (iv) Gopinath withdrew from business 5,000

 S. No Transactions Assets = Liabilities + Capital Cash (Rs) + Stock (Rs) + Debtors (Rs) Creditors (Rs) (Rs) (i) Gopinath Started business with 25,000 = 25,000 25,000 = 25,000 (ii) Purchased goods from Shyam 10,000 10,000 25,000 + 10,000 = 10,000 + 25,000 (iii) Sold goods to Sohan – 1,800 + 1,500 = – 300 25,000 + 8,200 + 1,500 = 10,000 + 24,700 (iv) Gopinath withdrew from business –5,000 = – 5,000 20,000 + 8,200 + 1,500 = 10,000 + 19,700

 Assets = 20,000 + 8,200 + 1,500 = Rs 29,700 Liabilities = Rs 10,000 Capital = Rs 19,700

Question 3:

Show the effect of the following transactions on the Accounting Equation:
(i) Started business with cash ₹ 50,000.
(ii) Salaries paid  ₹ 2,000.
(iii) Wages Outstanding ₹ 200.
(iv) Interest due but not paid ₹ 100.
(v) Rent paid in advance ₹ 150.

 S. No. Transactions Assets = Liabilities + Capital Cash (Rs) + Advances Expenses (Rs) = Outstanding Expenses (Rs) (Rs) (i) Started business with Cash 50,000 = 50,000 50,000 = 50,000 (ii) Salaries paid – 2,000 = – 2,000 (expenses) 48,000 = 48,000 (iii) Wages Outstanding = 200 + – 200 (expenses) 4,800 = 200 47,800 (iv) Interest due but not paid = 100 + – 100 (expenses) 48,000 = 300 + 47,700 (v) Rent paid in advance – 150 + 150 = 47,850 + 150 = 300 + 47,700

 Assets = 47,850 + 150 = Rs 48,000 Liabilities = Rs 300 Capital = Rs 47,700

Question 4:

What will be the effect of the following on the Accounting Equation?
(i) Harish started business with cash ₹ 18,000
(ii) Purchased goods for Cash ₹ 5,000 and on credit ₹ 2,000
(iii) Sold goods for cash ₹ 4,000 (costing ₹ 2,400)
(iv) Rent paid  ₹1,000 and Rent Outstanding ₹ 200

 S. No. Transactions Assets = Liabilities + Capital Cash (Rs) + Stock (Rs) = Creditors (Rs) + Outstanding Rent (Rs) (Rs) (i) Harish started business with cash 18,000 = 18,000 18,000 = 18,000 (ii) Purchased goods for Cash Rs 5,000 and on credit Rs 2,000 – 5,000 + 7,000 = 2,000 13,000 + 7,000 = 2,000 + 18,000 (iii) Sold goods for cash Rs 4,000 costing Rs 2,400 4,000 – 2,400 = 1,600 (Profit) 17,000 + 4,600 = 2,000 + 19,600 (iv) Rent paid Rs 1,000 and Rent Outstanding Rs 200 – 1,000 = 200 – 1,200 16,000 + 4,600 = 2,000 + 200 + 18,400

 Assets = 16,000 + 4,600 = Rs 20,600 Liabilities = 2,000 + 200 = Rs 2,200 Capital = Rs 18,400

Question 5:

Prepare Accounting Equation from the following:
(i)  Started business with cash ₹ 1,00,000 and Goods ₹ 20,000.
(ii) Sold goods worth ₹ 10,000 for cash ₹ 12,000.
(iii) Purchased furniture on credit for ₹
30,000

 S. No. Transaction Assets = Liabilities + Capital Cash (Rs) + Stock (Rs) + Furniture (Rs) = Creditors (Rs) (Rs) (i) Started business with cash Rs 1,00,000 and Goods Rs 20,000 1,00,000 + 20,000 = 1,20,000 1,00,000 + 20,000 = 1,20,000 (ii) Sold goods worth Rs 10,000 for cash Rs 12,000 12,000 – 10,000 = + 2,000 1,12,000 + 10,000 = 1,22,000 (iii) Purchased furniture on credit for Rs 30,000 30,000 = 30,000 1,12,000 + 10,000 + 30,000 = 30,000 + 1,22,000

 Assets = 1,12,000 + 10,000 + 30,000 = Rs 1,52,000 Liabilities = Rs 30,000 Capital = Rs 1,22,000

Question 6:

Prepare an Accounting Equation and Balance Sheet on the following basis:
(i)  Ajeet started business ₹ 20,000.
(ii) He purchased furniture for ₹ 2,000.
(iii) He paid rent of ₹ 200.
(iv) He purchase goods on credit ₹ 3,000.
(v) He sold goods (cost price ₹ 2,000) for ₹ 5,000 on cash.

 S. No. Transaction Assets = Liabilities + Capital Cash (Rs) + Furniture (Rs) + Stock (Rs) = (Rs) (i) Ajit started business Rs 20,000 20,000 = 20,000 20,000 = 20,000 (ii) He purchased furniture for Rs 2,000 – 2,000 + 2,000 = 18,000 + 2,000 = 20,000 (iii) He paid Rent of Rs 200 – 200 = – 200 (expense) 17,800 + 2,000 = 19,800 (iv) He purchased goods on credit Rs 3,000 3,000 = 3,000 17,800 + 2,000 + 3,000 = 3,000 + 19,800 (v) He sold goods (cost price Rs (2,000) for Rs 5,000 on cash 5,000 + + –2,000 = 3,000 (Profit) 22,800 + 2,000 + 1,000 = 3,000 + 22,800

 Assets = 22,800 + 2,000 + 1,000 = Rs 25,800 Liabilities = Rs 3,000 Capital = Rs 22,800

 Balance Sheet Liabilities Amount (Rs) Assets Amount (Rs) Capital 22,800 Cash 22,800 Creditors 3,000 Furniture 2,000 Stock 1,000 25,800 25,800

Question 7:

Prepare an Accounting Equation from the following :
(i) Started business with cash ₹ 1,00,000.
(ii) Purchased goods for cash ₹ 20,000 and on credit ₹ 30,000.
(iii) Sold goods for cash costing ₹ 10,000 and on credit costing ₹ 15,000 both at a profit of 20%.

 S. No. Transaction Assets = Liabilities + Capital Cash (Rs) + Stock (Rs) + Debtors (Rs) = Creditors (Rs) (Rs) (i) Started business with cash Rs 1,00,000 1,00,000 = 1,00,000 1,00,000 = 1,00,000 (ii) Purchased goods for cash Rs 20,000 and on credit Rs 30,000 – 20,000 + 20,000 30,000 = 30,000 80,000 + 50,000 = 30,000 + 1,00,000 (iii) Sold goods for cash costing Rs 10,000 and on credit costing 12,000 + – 10,000 = 2,000 Rs 15,000 both at a profit of 20% – 15,000 + 18,000 = 3,000 92,000 + 25,000 + 18,000 = 30,000 + 1,05,000

Question 8:

Develop an Accounting Equation from the following transactions:

 ₹ (i) Mohan commenced business with cash 50,000 (ii) Purchased goods for cash 30,000 (iii) Purchased goods on credit 20,000 (iv) Sold goods costing ₹ 10,000 for 12,000 (v) Bought furniture on credit 2,000 (vi) (vii) Paid cash to a creditor Salary paid 15,000 1,000

 S. No. Transaction Assets = Liabilities + Capital Cash (Rs) + Stock (Rs) + Furniture (Rs) = Creditors (Rs) (Rs) (i) Mohan commenced business with cash 50,000 = 50,000 50,000 = 50,000 (ii) Purchased goods for cash – 30,000 + 30,000 = 20,000 + 30,000 = 50,000 (iii) Purchased goods on credit 20,000 = 20,000 20,000 + 50,000 = 20,000 + 50,000 (iv) Sold goods costing Rs 10,000 for Rs 12,000 12,000 + – 10,000 = 2,000 (profit) 32,000 + 40,000 = 20,000 + 52,000 (v) Bought furniture on credit 2,000 = 2,000 32,000 + 40,000 + 2,000 = 22,000 + 52,000 (vi) Paid cash to a creditor – 15,000 = – 15,000 17,000 + 40,000 + 2,000 = 7,000 + 52,000 (vii) Salary Paid – 1,000 = – 1,000 (expenses) 16,000 + 40,000 + 2,000 = 7,000 + 51,000

 Assets = 16,000 + 40,000 + 2,000 = Rs 58,000 Liabilities = Rs 7,000 Capital = Rs 51,000

Question 9:

Prepare an Accounting Equation on the basis of the following transactions:
(i)
(ii) Credit purchase of goods 18,000
(iii) Payment made to creditor 17,500 in full settlement
(iv) Purchase of Machinery for Cash 20,000
(v) Depreciation on Machinery 2,000

 S. No. Transaction Assets = Liabilities + Capital Cash (Rs) + Stock (Rs) + Machinery (Rs) (Rs) (Rs) (i) Started business with Cash Rs 70,000 70,000 70,000 70,000 70,000 (ii) Credit purchase of goods Rs 18,000 18,000 = 18,000 70,000 + 18,000 = 18,000 + 70,000 (iii) Payment made to creditor Rs 17,500 in full settlement – 17,500 = – 18,000 + 500 (Discount Received) 52,500 + 18,000 = 70,500 (iv) Purchase of Machinery for Cash Rs 20,000 – 20,000 20,000 32,500 + 18,000 + 20,000 = 70,500 (v) Depreciation on Machinery Rs 2,000 – 2,000 – 2,000 (Depreciation) 32,500 + 18,000 + 18,000 = 68,500

 Assets = 32,500 + 18,000 + 18,000 = Rs 68,500 Liabilities = NIL Capital = Rs 68,500

Question 10:

Prove that the Accounting Equation is satisfied in all the following transactions of Suresh. Also prepare a Balance Sheet.
(i) Commenced business with cash  60,000.
(ii) Paid Rent in Advance 500.
(iii) Purchased goods for Cash 30,000 and Credit 20,000.
(iv) Sold goods for Cash 30,000 Costing 20,000.
(v) Paid Salary 500 and Salary Outstanding being 100.
(vi) Bought motorcycle for personal use 5,000.

 S. No. Transactions Assets = Liabilities + Capital Cash (Rs) + Prepaid Rent (Rs) + Stock (Rs) Creditors (Rs) + Salary outstanding (Rs) (Rs) (i) Commenced business with cash Rs 60,000 60,000 60,000 60,000 = 60,000 (ii) Paid Rent in Advance Rs 500 – 500 + 500 59,500 + 500 = 60,000 (iii) Purchased goods for Cash Rs 30,000 and Credit Rs 20,000 – 30,000 + 50,000 20,000 29,500 + 500 + 50,000 = 20,000 + 60, 000 (iv) Sold goods for Cash Rs 30,000 Costing Rs 20,000 30,000 + + – 20,000 10,000 (Profit) 59,500 + 500 + 30,000 = 20,000 + 70,000 (v) Paid Salary Rs 500 and Salary Outstanding being Rs 100 – 500 = – 500 100 – 100 59,000 + 500 + 30,000 = 20,000 + 100 + 69,400 (vi) Brought motorcycle for personal use Rs 5,000 – 5000 = – 5000 (Drawings) 54,000 + 500 + 30,000 = 20,000 + 100 + 64,400

 Assets = 54,000 + 500 + 30,000 = Rs 84,500 Liabilities = 20,000 + 100 = Rs 20,100 Capital = 64,400

 Balance Sheet Liabilities Amount (Rs) Assets Amount (Rs) Capital 64,400 Cash 54,000 Creditors 20,000 Prepaid Rent 500 Salary Outstanding 100 Stock 30,000 85,500 85,500

Question 11:

Show the effect of the following transactions on assets, liabilities and capital using the Accounting Equation . Also prepare a Balance Sheet :
(i)
(iii) Accrued Interest ₹ 500
(v) Amount withdrawn 5,000

 S. No. Transaction Assets = Liabilities + Capital Cash (Rs) + Accrued Interest (Rs) = Advance Commission (Rs) (Rs) (i) Started business with Cash Rs 60,000 60,000 = 60,000 60,000 = 60,000 (ii) Rent Received Rs 2,000 2,000 = 2,000 (Income) 62,000 = 62,000 (iii) Accrued Interest Rs 500 500 = 500 (Income) 62,000 + 500 = 62,500 (iv) Commission received in advance Rs 1,000 1,000 = 1,000 63,000 + 500 = 1,000 + 62,500 (v) Amount withdrawn Rs 5,000 – 5,000 = – 5,000 58,000 + 500 = 1,000 + 57,500

 Balance Sheet Liabilities Amount (Rs) Assets Amount (Rs) Capital 57,500 Cash 58,000 Advance Commission 1,000 Accrued Interest 500 58,500 58,500

Question 12:

Prove that the Accounting Equation is satisfied in all the following transactions of Sameer Goel:
(i) Started business with cash ₹ 10,000.
(ii)
(iii) Purchased goods for cash 5,000 and credit 2,000.
(iv) Sold goods for cash 8,000 costing 4,000.
(v)  Paid salary 450 and salary outstanding being 100.
(vi) Bought motorcycle for personal use 3,000.

 S. No. Transactions Assets = Liabilities + Capital Cash (Rs) + Prepaid Rent (Rs) + Stock (Rs) = Creditors (Rs) + Outstanding Salary (Rs) (Rs) (i) Started business with Cash Rs 10,000 10,000 10,000 10,000 = 10,000 (ii) Paid Rent in Advance Rs 300 – 300 300 9,700 + 300 = 10,000 (iii) Purchased goods for Cash Rs 5,000 and credit Rs 2,000 – 5,000 + + 5,000 = 2,000 2,000 = 4,700 + 300 + 7,000 = 2,000 + 10, 000 (iv) Sold goods for Cash Rs 8,000 Costing Rs 4,000 8,000 – 4,000 4,000 (Profit) 12,700 + 300 + 3,000 = 2,000 + 14,000 (v) Paid Salary Rs 450 and Salary outstanding being Rs 100 – 450 = – 450 (Expense) 100 – 100 (Expense) 12,250 + 300 + 3,000 = 2,000 + 100 + 13,450 (vi) Brought motorcycle for personal use Rs 3,000 – 3,000 = – 3,000 (Drawings) 9,250 + 300 + 3,000 = 2,000 + 100 + 10,450

 Assets = 9,250 + 300 + 3,000 = Rs 12,550 Liabilities = 2,000 + 100 = Rs 2,100 Capital = 10,450

Question 13:

Show the Accounting Equation on the basis of the following transactions and present a Balance Sheet on the last new equation balance:

 ₹ (i) Raj commenced business with cash 70,000 (ii) Purchased goods on credit 14,000 (iii) Withdrew for Private use 1,700 (iv) Goods purchased for cash 10,000 (v) Paid wages 300 (vi) (vii) (viii) (ix) Paid to creditors Sold goods on credit for Sold goods for cash (cost price was Purchased motorcycle for cash ₹ 3,000) Purchased furniture for 10,000 15,000 4,000 ​ ​500

 S. No. Transactions Assets = Liabilities + Capital Cash (Rs) + Stock (Rs) + Furniture (Rs) + Debtors (Rs) Creditors (Rs) (Rs) (i) Raj Commenced business 70,000 = 70,000 70,000 = 70,000 (ii) Purchased goods on credit 14,000 = 14,000 70,000 + 14,000 = 14,000 70,000 (iii) Withdraw for Private use – 1,700 = – 1,700 (Drawings) 68,300 + 14,000 = 14,000 + 68,300 (iv) Goods purchased for Cash – 10,000 + 10,000 58,300 + 24,000 = 14,000 + 68,300 (v) Paid Wages – 300 = – 300 (Expense) 58,000 + 24,000 = 14,000 + 68,000 (vi) Paid to Creditors – 10,000 = – 10,000 48,000 + 24,000 = 4,000 + 68,000 (vii) Sold goods on credit – 15,000 + 15,000 = 48,000 + 9,000 + 15,000 = 4,000 + 68,000 (viii) Sold goods for cash (costing Rs 3,000) 4,000 – 3,000 1,000 (Profit) 52,000 + 6,000 + 15,000 = 4,000 + 69,000 (ix) Purchased Furniture – 500 500 51,500 + 6,000 + 500 + 15,000 = 4,000 + 69,000

 Balance Sheet Liabilities Amount (Rs) Assets Amount (Rs) Capital 69,000 Cash 51,500 Creditors 4,000 Stock 6,000 Furniture 500 Debtors 15,000 73,000 73,000

Question 14:

Raghunath had the following transactions in an accounting year:
(i) Commenced business with cash 50,000.
(ii) Paid in to bank 10,000.
(iii) Purchased goods for Cash 20,000 and Credit ₹ 30,000.
(iv) Sold goods for Cash 40,000 Costing 30,000.
(v) Rent paid 500.
(vi) Rent Outstanding 100.
(vii) Bought furniture ₹ 5,000 on credit.
(viii) Bought refrigerator for personal use 5,000.
(ix) Purchased motorcycle for cash ₹ 20,000.
Create an Accounting Equations to show the effect of the above transaction on his assets, liabilities and capital and also show his final Balance Sheet.

 S. No. Transaction Assets = Liabilities + Capital Cash (Rs) + Bank (Rs) + Stock (Rs) + Furniture (Rs) + Motor Cycle (Rs) = Creditors (Rs) + Outstanding Rent (Rs) (Rs) (i) Commenced business with cash Rs 50,000 50,000 50,000 50,000 = 50,000 (ii) Paid in to bank Rs 10,000 – 10,000 + 10,000 40,000 + 10,000 = 50,000 (iii) Purchased goods for Cash Rs 20,000 and Credit Rs 30,000 –20,000 + 20,000 30,000 30,000 20,000 + 10,000 + 50,000 = 30,000 + 50,000 (iv) Sold goods for Cash Rs 40,000 Costing Rs 30,000 40,000 – 30,000 = 10,000 (Expense) 60,000 + 10,000 + 20,000 = 30,000 + 60,000 (v) Rent paid Rs 500 – 500 = – 500 (Expense) 59,500 + 10,000 + 20,000 = 30,000 + 59,500 (vi) Rent Outstanding Rs 100 100 + – 100 (Expense) 59,500 + 10,000 + 20,000 = 30,000 + 100 + 59,400 (vii) Bought furniture Rs 5,000 on credit 5,000 = 5,000 59,500 + 10,000 + 20,000 + 5,000 = 35,000 + 100 + 59,400 (viii) Bought refrigerator for personal use Rs 5,000 – 5,000 = – 5,000 (Drawings) 54,500 + 10,000 + 20,000 + 5,000 = 35,000 + 100 + 54,400 (ix) Purchased motorcycle for cash – 20,000 + 20,000 34,500 + 10,000 + 20,000 + 5,000 + 20,000 = 35,000 + 100 + 54,400

 Balance Sheet Liabilities Amount (Rs) Assets Amount (Rs) Capital 54,400 Cash 34,500 Creditors 35,000 Bank 10,000 Rent Outstanding 100 Stock 20,000 Furniture 5,000 Motor Cycle 20,000 89,500 89,500

Question 15:

Prepare an Accounting Equation from the following :
(i) Started business with cash 50,000 and goods ₹ 30,000.
(ii) Purchased goods for cash 30,000 and on credit from Karan 20,000.
(iii) Goods costing 40,000 were Sold for 55,000.
(iv) Withdrew cash for personal use 10,000.
(v) Rent outstanding 2,000.

 S. No. Transactions Assets = Liabilities + Capital Cash (Rs) + Stock (Rs) Creditors (Rs) + Outstanding Rent  (Rs) (Rs) (i) Started business with Cash Rs 50,000 and goods Rs 30,000 50,000 + 30,000 80,000 50,000 + 30,000 = 80,000 (ii) Purchased goods for Cash Rs 30,000 and on credit from Kiran Rs 20,000 – 30,000 30,000 20,000 20,000 20,000 + 80,000 = 20,000 + 80,000 (iii) Goods costing Rs 40,000 were Sold for Rs 55,000 55,000 - 40,000 15,000 (Profit) 75,000 + 40,000 = 20,000 + 95,000 (iv) Withdrew Cash for personal use Rs 10,000 – 10,000 – 10,000 (Drawings) 65,000 + 40,000 = 20,000 + 85,000 (v) Rent Outstanding Rs 2,000 2,000 – 2,000 (Expenses) 65,000 + 40,000 = 20,000 + 2,000 + 83,000

Question 16:

Show an Accounting Equation for the following transactions:
(i) D. Mahapatra commenced business with cash of ₹ 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 Bill Receivable on its maturity.

 Transactions Assets = Liabilities + Capital Cash (Rs) + Bank (Rs) + Stock (Rs) + Machinery (Rs) + Furniture (Rs) + Debtors (Rs) + Bills Receivable (Rs) (Rs) (1) Started Business with Cash of Rs 50,000 and Bank of Rs 1,00,000 50,000 + 1,00,000 1,50,000 Stock Rs 60,000 60,000 60,000 Machinery Rs 1,00,000 1,00,000 1,00,000 Furniture Rs 50,000 50,000 50,000 50,000 + 1,00,000 + 60,000 + 1,00,000 + 50,000 = 3,60,000 (ii) 1/3rd of above goods sold at a profit of 10% on cost, that is, 60,000 × 1/3 = 20,000 × 110% = 22,000 and half of this is received in Cash 11,000 (20,000) 11,000 2,000 (Profit) 61,000 + 1,00,000 + 40,000 + 1,00,000 + 50,000 + 11,000 = 3,62,000 (iii) Depreciate Machinery by 10% (1,00,000 × 10%) (10,000) (10,000) Expenses 61,000 + 1,00,000 + 40,000 + 90,000 + 50,000 + 11,000 = 3,52,000 (iv) Cash withdrawn for personal use (10,000) (10,000) 51,000 + 1,00,000 + 40,000 + 90,000 + 50,000 + 11,000 = 3,42,000 (v) Interest on Drawings charged @ 5% (10,000 × 5%) (500) 500 51,000 + 1,00,000 + 40,000 + 90,000 + 50,000 + 11,000 = 3,42,000 (vi) Goods Sold to Gupta for Rs 10,000 and received a Bill Receivable for the same amount. (10,000) 10,000 51,000 + 1,00,000 + 30,000 + 90,000 + 50,000 + 11,000 + 10,000 = 3,42,000 (vii) Received Rs 10,000 from Gupta against the Bill Receivable on its maturity. 10,000 (10,000) 61,000 + 1,00,000 + 30,000 + 90,000 + 50,000 + 11,000 + NIL = NIL + 3,42,000

Question 17:

Prepare Accounting Equation from the following :
(a) Started business with cash ₹ 1,00,000.
(b) Purchase goods for cash ₹ 20,000 and on credit ₹ 30,000.
(c) Sold goods for cash costing ₹ 10,000 and on credit costing ₹ 15,000 both at a profit of 20% .
(d) Paid salaries ₹ 8,000.

 S. No. Transactions Assets = Liabilities + Capital Cash (Rs) + Stock (Rs) + Debtors (Rs) Creditors (Rs) (Rs) (i) Started business with cash 1,00,000 1,00,000 1,00,000 = 1,00,000 (ii) Purchased goods for Cash Rs 20,000 and on credit Rs 30,000 – 20,000 + 50,000 = 30,000 80,000 + 50,000 = 30,000 + 1,00,000 (iii) Sold goods for cash costing Rs 10,000 and on credit costing Rs 15,000 both at profit of 20% 12,000 + – 25,000 + 18,000 5,000 (Profit) 92,000 + 25,000 + 18,000 = 30,000 + 1,05,000 (iv) Paid Salaries Rs 8,000 – 8,000 – 8,000 (Expenses) 84,000 + 25,000 + 18,000 = 30,000 + 97,000

 Assets = 84,000 + 25,000 + 18,000 = Rs 1,27,000 Liabilities = Rs 30,000 Capital = Rs 97,000

Question 18:

Show the accounting equation on the basis of following transactions:
(a) Ram started business with ₹ 25,000.
(b) Purchased goods from Shyam ₹ 10,000.
(c) Sold goods to Sohan costing ₹ 1,500 for ₹ 1,800.