Basic Accouting Equatio

ASSETS

Date Transaction Cash in hand Cash at bank P&M Debtors

1-Jul Capital bought-in 32500000
1 Deposit with SBI -32000000 32000000
2 DFC Term Loan 47500000
5 Plant & Machinery -75000000 75000000
15 Raw Materials on credit
20 Credit Sales 6000000
27 Received from customer 4500000 -4500000
28 Paid to supplier -3000000
31 Salaries -125000
31 Wages -180000
31 Drawings -200000
31 Consumed Raw Material

Closing Raw Material - 500000

Consumed RM- 4500000

Total of Asset 320000 5675000 75000000 1500000

Grand Total 82995000

Equation Asset =
82995000

82995000 =
asic Accouting Equation

= Outside Liability + Owner's Equity

Raw materials Brought-in Minus Plus

inventory Loans Creditors capital Drawings income
32500000

47500000

5000000 5000000
6000000

-3000000

200000
-4500000

500000 47500000 2000000 32500000 200000 6000000

0 49500000 33495000

Outside Liabilities + Equity

49500000 33495000

82995000
Minus
expenses

125000
180000

4500000

4805000
Date Transaction
July
1 1
1 2

2 3
5 4
15 5
20 6

27 7
28 8

31 9
31 10
31 11

Further information
Transactions Amount(in Rs)

Radhika brings in capital in cash 32,500,000

Opens an account with SBI and deposit cash 32,000,000
Gets term loan from DFC by way of a cheque and deposits the
same with SBI 47,500,000
Purchases plant and machinery. Issues cheue. 75,000,000
Purchases raw materials from a supplier on credit 5,000,000
Sells textiles to a customer on credit 6,000,000
Receives cheque in part payment from the customer. Deposits
with SBI. 4,500,000
Issues part payment cheque to supplier. 3,000,000

Issue cheques to administrative personnel towards month's salary 125,000

Pays cash to factory personnel towards month's wages 180,000
Issues cheque to herself for personal use. 200,000

As on 31st July, the firm has in its possession unconsumed raw

material inventory of Rs 5,00,000. There is no other inventory
lying as on that date.