PRACTICAL PROBLEM 04
Q. 4 Give the accounting equation for the following transactions.
1. Mr. Swaraj commenced business with Bank balance Rs 1,10,000.
2. Purchased Furniture on credit from S.M Furniture Mart Rs 25,000.
3. Bought goods on credit from Yuvraj Rs 15,000.
4. Purchased Machinery Rs 10,000.
5. Paid Electricity bill Rs 3,500.
6. Goods destroyed by fire Rs 1,500.
Ans:
| Sr. No | Transaction | Assets (Rs) | = | Liabilities (Rs) | + | Capital (Rs) |
| 1 | Mr. Swaraj commenced business with Bank balance Rs 1,10,000. | 1,10,000 | = | 0 | + | 1,10,000 |
| 2 | Purchased Furniture on credit from S.M Furniture Mart Rs 25,000. | 1,10,000 | = | 0 | + | 1,10,000 |
| (+) 25,000 | 25,000 | 0 | ||||
| 3 | Bought goods on credit from Yuvraj Rs 15,000. | 1,35,000 | = | 25,000 | + | 1,10,000 |
| (+) 15,000 | (+) 15,000 | 0 | ||||
| 4 | Purchased Machinery Rs 10,000. | 1,50,000 | = | 40,000 | + | 1,10,000 |
| (+)10,000 | ||||||
| (-) 10,000 | ||||||
| 5 | Paid Electricity bill Rs 3,500. | 1,50,000 | = | 40,000 | + | 1,10,000 |
| (-) 3,500 | (-) 3,500 | |||||
| 6 | Goods destroyed by fire Rs 1,500. | 1,46,500 | = | 40,000 | + | 1,06,500 |
| (+) 1,500 | (-) 1,500 | |||||
| 1,45,000 | = | 40,000 | + | 1,05,000 |