Question No 2 Chapter No 4
2. Prepare accounting equation on the basis of the following:
| (i) | Harmanjit started the business with cash Rs 2,00,000 |
| (ii) | Furniture purchased for cash Rs 20,000 |
| (iii) | Rent paid in cash Rs 2,000 |
| (iv) | Purchased goods on credit Rs 30,000 |
| (v) | Sold goods (cost price Rs 20,000) for cash in cash |
The solution of Question No 2 Chapter No 4: –
| S. No. | Particulars | Assets | Liabilities | Capital | ||
| Cash | + Furniture | +stock | +Bank loan+ Johan |
|||
| 1 | Harmanjit Started Business with cash | 2,00,000 | – | – | – | 2,00,000 |
| 2,00,000 | – | – | – | 2,00,000 | ||
| 2 | Furniture purchased for cash | -20,000 | + 20,000 | – | – | – |
| 1,80,000 | + 20,000 | – | – | 2,00,000 | ||
| 3 | Rent paid in cash | – 2,000 | + | – | – 2,000 | |
| 1,78,000 | + 20,000 | – | 1,98,000 | |||
| 4 | Purchased goods on credit | – 15,000 | – | +30,000 | +30,000 | |
| 2,72,000 | + 20,000 | +30,000 | 30,000 | 1,98,000 | ||
| 5 | Sold goods on profit | + 25,000 | – 20,000 | – | + 5,000 | |
| Total | 2,03,000 | +20,000 |
+10,000 | +30,000 |
+2,03,000 |
|
Answer: –
Assets = 2,03,000 + 20,000 + 10,000 = 2,33,000/-
Liabilities = 30,000/-
Capital = 2,03,000/-
Liabilities +Capital
30,000 + 2,03,000= 2,33,000/-
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