The Total solution for NCERT class 6-12
(a)
Started business with cash
1,20,000
(b)
Purchased goods for cash
10,000
(c)
Rent received
5,000
(d)
Salary outstanding
2,000
(e)
Prepaid Insurance
1,000
(f)
Received interest
700
(g)
Sold goods for cash (costing Rs 5,000)
7,000
(h)
Goods destroyed by fire
500
S.No.
Explanation
Assets
=
Liabilities
+
Capital
Cash
Stock
Prepaid Expenses
Outstanding Expenses
Increase in cash
Increase in capital
NIL
Increase in stock
(10,000)
1,10,000
Increase in capital (Profit)
1,15,000
1,25,000
Increase in outstanding expenses
Decrease in capital (Expense)
(2,000)
1,23,000
Increase in prepaid expenses
Decrease in cash
(1,000)
1,14,000
1,14,700
1,23,700
Decrease in stock
(5,000)
1,21,700
1,25,700
(500)
Decrease in capital (Loss)
4,500
1,25,200