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  • Question On Dual Aspect Concept

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    Advait Dalvi
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    Owner invested Rs. 2,50,000 cash to start Bon Voyage Travel. The business paid expenses like rent, supplies, salaries, and advertising totaling Rs. 47,500 in cash. Equipment costing Rs. 80,000 was purchased on credit. Revenue of Rs. 1,00,000 in travel commissions was earned, of which Rs. 20,000 was received in cash, leaving Rs. 80,000 still receivable. A payment of Rs. 50,000 was made toward the equipment credit, and Rs. 10,000 of expenses were charged to the corporate credit card.

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    Question on Dual Aspect Concept

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    Owner invested Rs. 2,50,000 cash to start Bon Voyage Travel. The business paid expenses like rent, supplies, salaries, and advertising totaling Rs. 47,500 in cash. Equipment costing Rs. 80,000 was purchased on credit. Revenue of Rs. 1,00,000 in travel commissions was earned, of which Rs. 20,000 was received in cash, leaving Rs. 80,000 still receivable. A payment of Rs. 50,000 was made toward the equipment credit, and Rs. 10,000 of expenses were charged to the corporate credit card.

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    34 views1 page

    Question On Dual Aspect Concept

    Uploaded by

    Advait Dalvi
    Owner invested Rs. 2,50,000 cash to start Bon Voyage Travel. The business paid expenses like rent, supplies, salaries, and advertising totaling Rs. 47,500 in cash. Equipment costing Rs. 80,000 was purchased on credit. Revenue of Rs. 1,00,000 in travel commissions was earned, of which Rs. 20,000 was received in cash, leaving Rs. 80,000 still receivable. A payment of Rs. 50,000 was made toward the equipment credit, and Rs. 10,000 of expenses were charged to the corporate credit card.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Problem : Dual Aspect Concept and Accounting Equation

    During the month of June Bon Voyage Travel recorded the following transactions
    1. Owner’s invested Rs 2,50,000 to start a business.
    2. The month’s rent of Rs 5,000 was paid in cash.
    3. Equipment costing Rs 80,000 was bought on credit.
    4. Rs 5,000 was paid for office supplies
    5. Advertising costing Rs 7,500 was paid for in cash.
    6. Paid Rs 30,000 employee salaries in cash.
    7. Earned travel commission of Rs 1,00,000 of which Rs 20,000 was received in cash.
    8. Paid Rs 50,000 of Rs. 80,000 owed to the equipment supplier.
    9. Charged Rs 10,000 of miscellaneous expenses on the corporate credit card.

    Required:
    a. Prepare an analysis of the month’s transactions using the tabular format and Explain how the
    transactions during the month changed the basic accounting equation.

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