PRACTICAL PROBLEM 05
Q. 5 Show accounting equation for the following transactions:
1. Rohit started business with cash Rs 50,000.
2. Bought goods on credit from Manoj Rs 6,000.
3. Cash purchases Rs 5,000.
4. Paid wages Rs 3,000 to Casual labour.
5. Sold goods to Santosh Rs 7,000 on credit.
6. Received Commission Rs 1,000 from Vaishali.
Ans:
| Sr. No | Transaction | Assets (Rs) | = | Liabilities (Rs) | + | Capital (Rs) |
| 1 | Rohit started business with cash Rs 50,000. | 50,000 | = | 0 | + | 50,000 |
| 2 | Bought goods on credit from Manoj Rs 6,000. | 50,000 | = | 0 | + | 50,000 |
| (+) 6,000 | 6,000 | 0 | ||||
| 3 | Cash purchases Rs 5,000. | 56,000 | = | 6,000 | + | 50,000 |
| (+) 5,000 | ||||||
| (-) 5,000 | ||||||
| 4 | Paid wages Rs 3,000 to Casual labour. | 56,000 | = | 6,000 | + | 50,000 |
| (-) 3000 | (-) 3,000 | |||||
| 5 | Sold goods to Santosh Rs 7,000 on credit. | 53,000 | = | 6,000 | + | 47,000 |
| (-) 7,000 | ||||||
| (+) 7,000 | ||||||
| 6 | Received Commission Rs 1,000 from Vaishali. | 53,000 | = | 6,000 | + | 47,000 |
| (+) 1,000 | (+) 1,000 | |||||
| 54,000 | = | 6,000 | + | 48,000 |