1.

Raghunath had the following transactions in an accounting year:(i) Commenced business with cash ₹ 50,000.(ii) Paid into 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 Equation to show the effect of the above and also show his Balance Sheet.

Answer» Raghunath had the following transactions in an accounting year:

(i) Commenced business with cash 50,000.

(ii) Paid into 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 Equation to show the effect of the above and also show his Balance Sheet.


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