Manjarishrestha4idn
Answered

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Assets: Rs. 1,40,000
Capital: Rs. 1,40,000

Develop the accounting equation from the following transactions:

1. Started a business with cash of Rs. 8,000 and bank balance of Rs. 2,000.
2. Purchased goods on credit of Rs. 2,000.
3. Sold goods on credit of Rs. 3,000.
4. Received commission of Rs. 500.
5. Withdrawn cash from bank of Rs. 1,000.

[Ans. Assets: Rs. 12,500, Capital: Rs. 10,500]

Sagot :

GinnyAnsweridn
Certainly, let's break down the transactions step-by-step and develop the accounting equation.

1. Transaction: Started a business with cash of Rs.8,000 and bank balance of Rs.2,000.

- Assets:
- Cash: Rs.8,000
- Bank Balance: Rs.2,000
- Equity (Capital):
- Capital: Rs.10,000 (Cash Rs.8,000 + Bank Balance Rs.2,000)

Initial accounting equation:
[tex]\[ \text{Assets} = \text{Capital} \\ \text{Rs.10,000} = \text{Rs.10,000} \][/tex]

2. Transaction: Purchased goods on credit of Rs.2,000.

- Assets:
- Cash: Rs.8,000
- Bank Balance: Rs.2,000
- Goods purchased on credit: Rs.2,000
- Liabilities:
- Creditors: Rs.2,000

Updated accounting equation:
[tex]\[ \text{Assets} = \text{Liabilities} + \text{Capital} \\ \text{Rs.12,000} = \text{Rs.2,000} + \text{Rs.10,000} \][/tex]

3. Transaction: Sold goods on credit of Rs.3,000.

- Assets:
- Cash: Rs.8,000
- Bank Balance: Rs.2,000
- Goods purchased on credit: Rs.2,000
- Goods sold on credit: Rs.3,000
- Liabilities:
- Creditors: Rs.2,000

Updated accounting equation:
[tex]\[ \text{Assets} = \text{Liabilities} + \text{Capital} \\ \text{Rs.15,000} = \text{Rs.2,000} + \text{Rs.13,000} \][/tex]

4. Transaction: Received commission of Rs.500.

- Assets:
- Cash: Rs.8,000
- Bank Balance: Rs.2,000
- Goods purchased on credit: Rs.2,000
- Goods sold on credit: Rs.3,000
- Commission received: Rs.500
- Liabilities:
- Creditors: Rs.2,000

Updated accounting equation:
[tex]\[ \text{Assets} = \text{Liabilities} + \text{Capital} \\ \text{Rs.15,500} = \text{Rs.2,000} + \text{Rs.13,500} \][/tex]

5. Transaction: Withdrawn cash from bank of Rs.1,000.

- Assets:
- Cash: Rs.8,000
- Bank Balance: Rs.1,000 (Rs.2,000 - Rs.1,000 withdrawn)
- Goods purchased on credit: Rs.2,000
- Goods sold on credit: Rs.3,000
- Commission received: Rs.500
- Liabilities:
- Creditors: Rs.2,000

Updated accounting equation:
[tex]\[ \text{Assets} = \text{Liabilities} + \text{Capital} \][/tex]
[tex]\[ \text{Rs.12,500} = \text{Rs.2,000} + \text{Rs.10,500} \][/tex]

Thus, after all transactions, the final state of the accounting equation is:
- Total Assets: Rs.12,500
- Total Liabilities: Rs.2,000
- Total Capital: Rs.10,500
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