The Total solution for NCERT class 6-12
Mohit has the following transactions, prepare accounting equation:
Rs
(a)
Business started with cash
1,75,000
(b)
Purchased goods from Rohit
50,000
(c)
Sales goods on credit to Manish (Costing Rs 17,500)
20,000
(d)
Purchased furniture for office use
10,000
(e)
Cash paid to Rohit in full settlement
48,500
(f)
Cash received from Manish
(g)
Rent paid
1,000
(h)
Cash withdrew for personal use
3,000
S.No.
Explanation
Assets
Liabilities
+
Capital
Cash
Stock
Debtors
Furniture
=
Creditors
Increase in cash
Increase in capital
NIL
Increase in stock
Increase in creditors (Rohit)
Increase in debtors (Manish)
Decrease in stock
(17,500)
Increase in capital (Profit)
2,500
32,500
1,77,500
Increase in furniture
Decrease in cash
(10,000)
1,65,000
Decrease in creditors (Rohit)
(50,000)
Decrease in dash
(48,500)
(Discount received)
1,500
1,16,500
1,79,000
Decrease in debtors (Manish)
(20,000)
1,36,500
Decrease in capital (Expense)
(1,000)
1,35,500
1,78,000
Decrease in capital (Drawings)
(3,000)
1,32,500