1.

Show the effect of following transaction on the accounting equation: Rs (a) Manoj started business with (i) Cash 2,30,000 (ii) Goods 1,00,000 (iii) Building 2,00,000 (b) He purchased goods for cash 50,000 (c) He sold goods(costing Rs 20,000) 35,000 (d) He purchased goods from Rahul 55,000 (e) He sold goods to Varun (Costing Rs 52,000) 60,000 (f) He paid cash to Rahul in full settlement 53,000 (g) Salary paid by him 20,000 (h) Received cash from Varun in full settlement 59,000 (i) Rent outstanding 3,000 (j) Prepaid Insurance 2,000 (k) Commission received by him 13,000 (l) Amount withdrawn by him for personal use 20,000 (m) Depreciation charge on building 10,000 (n) Fresh capital invested 50,000 (o) Purchased goods from Rakhi 6,000

Answer»

Show the effect of following transaction on the accounting equation:










































































































Rs



(a)



Manoj started business with







(i) Cash



2,30,000





(ii) Goods



1,00,000





(iii) Building



2,00,000



(b)



He purchased goods for cash



50,000



(c)



He sold goods(costing Rs 20,000)



35,000



(d)



He purchased goods from Rahul



55,000



(e)



He sold goods to Varun (Costing Rs 52,000)



60,000



(f)



He paid cash to Rahul in full settlement



53,000



(g)



Salary paid by him



20,000



(h)



Received cash from Varun in full settlement



59,000



(i)



Rent outstanding



3,000



(j)



Prepaid Insurance



2,000



(k)



Commission received by him



13,000



(l)



Amount withdrawn by him for personal use



20,000



(m)



Depreciation charge on building



10,000



(n)



Fresh capital invested



50,000



(o)



Purchased goods from Rakhi



6,000









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