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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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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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