Chapter 5 Accounting Egvanon Sine ° 4 a smahcal exprAuaion = Assets 2 Equctes (et dois > Assets Ca pital 6 Uiabihty * = * lo+ 2 (5+ 3 2 3 = Ae 2s 3 ¢ = é > Banc Tramsadiows ond their eds A Mahon ured buses with © 10,00 wash and E5000 furudtuia E1009 Cash BMrhan 2Sp0> Rents KN Capital Carh 10,000 E15) o00 Furewitwe. 5,000 “assets'@ Si Abst Meahily Copa. Com ——Facrrahae lowe + 5,000 > 15,506 2 Goods pubdared for % 2,000 in wash ce ~. Zi ooo an)NN ~ E2000 Cash Soli- G vodslsht) Cosh GY) Le. Garoo 0 . ° Supt A Eee, a {| fe B Reine a £2000 bask eee is silent Sol No ee ine Stouk. Ondine # 3,000 : (4) 3000 WO Goods sting E lvoe is old fe BI, 220 im wth oad LR o eT Poss ae Sold goo mat “> Sol-- ~ Stk Cash, * ©) 1,000 #1200 = ° (4) Ree 2.00 = Doo © Gourds wghvy El,r00 15 fold £400 in wth \2200 Loss —_—_S 2300 > R 900 ¢—_* con Stok Cash = SRO + = -) 300 C)IR00 (F400 — (-) 300 B x ¢ Conde take = 2 nom in end GIMME A F 2 Yoo\-) 900 ¢ Goods an E %,o00 is sold ‘ $ol'- = (\3-—— > 8 E00 Shik Debtor Les Cap ind RR (Ao (FRY 00 a 400 — Yoo 7 ae x x x « x x x —x* x— x 4 repute Asountrng apstion °- a Rapa irwmenck burns lite AES. Gi) He prea sh F 3,000 jee ae (wy Re ot " ny E L000 fy Malan fie = 800 Zoo FINAL EQuATiON 4 Zoo 4Boo % SPECIAL TRANSACTIONS a THEIR EFFECTS GE) wo (Raupad opel Expense paid im advance. ASSETS Liagity + Capac 5,006 boo 2,200 + 3,000 ©)1d00 +Bo0 2,000 + Roop + 800 Cosh Prewpaid exponse, ©) Gy 5 o + 0() z ° q ° re Oo . ° Gi) Oudstandimg expense C Expenes Due ov Pee _ Unglara)™ = Expat inuatrdy but Ouat pad Bong - ols. expose — (ey) Cy) ° = QD Wo O } : it) Accmmed Imtome © Inwome eamed bik yt — sauived ) Accmed, { Inveme intewe GF) = ° (+) \ ) —— ti Inwme suuived in advance. C Uneamed nvme) To \nme steed, Im advance (+ = Od & a ) oy Pardudar amet ss rar tea eee ASSETS = LIABTY CAPITAL expennepa tiuwler tek &) a) 3/Prepare an Accounting Equation andBalance Sheet)on t the following basis: Af Ajeet started business with cash % 20,000.— ar He barchased ETnor 2,000. <— HH HApaidrent of Fi (iv) He purchased goods on soit Prom sy gee: (Gh He sold goods (coBt price 5 2,000) for & 5,000 6h cash) oa ates | (Assets: + Furniture® 2,000 + Stock® 1,000 = for) Liabilities: OfaiORS™3000 + CBpILGLERT22IS00 | Sol CASH Fumitue Stok Credihas LL. Ro, 000 = Qo 000 R. |)a,000 +4, 000 = oO Nw al 18 900 + 2,000 = 0 ooo () 400 ©) 200 Now pw] 1, 800 + Ado ° + 19,895 4, +3600 Bo00 Ne \,800 + Qooo + Zooo Zoeo + (4,800 )5, 000 ©) 2000 + 3, d00 asus Goo + 2000 + L000 Boos + 22 Boe —<——— ._——_—_., __ 25 Qnw25, Boo 25 Bos SNe ASSES. E LLABILITIES + CaP ita] | CASH tod Facmituhe (editor: A, | 100,000 + Qo,000 (20,000 a. {FAIR 000 €) lo, 000 = (#)2, 000 N-E] 1,12 000 + To, 900 7 o + (88 , ooo 3.) + 30000 > 30,000 FE \W2vo00 + lo, 57 + Zo,c0D = Boum + \AAoTOD o = \____,—___ \52, ovo Vo? o>J) Purchased goods foréash 3u,uU (i Purchased goods on@redit) 20,000 “Gf Sold goods (costing 10,000) for 12,000 ughiftinitar) on eredit 2,000 toa creditor — 115,000 ‘alary{paid) ,000 ee 3 J f,000 + Stock & 40,000 Furniture €2,000= Liabilities: Creditors ® 5, ert Furniture % 2,000 + Capital: & 51,000.) SNo Aes. 6S. = LiABiities + CAPITAL Cobh Stk Romnihae Oredctors Gain 1. | 50,000 Soave 2. |CVBo,00 (4) S000 N-E | 0,000 + Joes = © + Dome + R0,000 = 20 oxo NE | Ao,v7 + So,sod =o, 0 + Boom 4. HR 00 Clo, 90 : } + 2,000 NE |32Xoo0 + Yoo = 20000 + SQ op 5 +3000 = Oo +Q00D NG ]32000 + Yo, cod + Advo Ro,cm + Amo + Sdovm 6. |el5o00 = ©15,000 NE | Move + Yoors + Qooo = S,pon + 2000 + 5A IVD +. }O)|,000 &) [000 ae \b, ro + Yo,07 + doom = Sooo + ow 45) ovo ——= ——_ 5,000 SB obo @ ox 080/ se | assess unguimes caPmat No.| CASH Stock Machine Creditor a. |e, 000 Fo bee a 1,000 2 (8, 000Je, 000 a Fo 008, Ru 1,000 2 (8, 000 N+ € | To,00¢ + 13,000 (3 noo + 1000 3 [17500 = O)NB,000 Fy) 500 NE | 58,500 + 18000 s + 10,500 4. 1a%o000 Qo, 000 N.c | 38,500 + 18, 000 + 0,000 7 ° + Te, S00 5. ©) 2,000 (-) 2000 fab 38 eo + 18,000 + (8,000 = ° + $8,500 —__.,. —_— Vs Sol ASSETS = LIABIUTIES + Capital ofS $ CASH Pourgid “ E tes Plea | 4. | 5e,000 So 00d 2 13,000 () 2,000 N.€ | 43,000 = 0 +48 oo 3. = Qoo C) Roo N-& |48 000 = 200 4+ 44, B00 4 loo loo —N-E |43, 000 = Root loo + Yt tooNE first 4g, ovo Ql\50 + (5° Qoot tou Coes [oo + 4tYoo 44,850 + 150 ——— ee 43 opD oo + foo + 44,400 4g ow Sol ASSETS LABiitIes + CAPITAL Sno.] CASH Stk Slay 1] Wo, 78D (20,005 a. | Co, rm + 10,000 NE | Ve, ooo + v, 55D 6 + (Ro ove 3. | @)5,000 + 5,000 we | (5, co + |o oD = ° + IAS 200 4 Aooo GD 2,000 NE | 15,000 + \o om = Rovo + 123,000 {t)F,000 (-) 5,000 = (4) 200d NE | |a,o00 + 5 ooo = Avvo 4135, 70D 6. ©) 500 = ©) Soo L.€ VAR poo 4 UW Sno 5 Cee re‘| ©) 500 = ©) Soo 6.6 |BAjo» + 4,500 = apne + 1RY Soe __.— Ce 126, Soo IR6 500 Sole ASSETS = LIABILITIES + Capital T 2 Cash agpe Suk Ceditor os 1 | 0, od = 60, oD a. | ©)500 G) 500 ne | 54,500 (4) 500 = ° + bo, 000 3+ [30,000 50,800 = _2o,000 NE |A4,500 By Hoo (+) 5o,000 = Ro, 000 + bo, 500 4. JW) Seo (2,000 E G@ lo, 070 NE [54,500(4) 500 (+) 30,o0 = Ro0vD (+) 10,000 ola tee oN PenNE [54,50d\+) Soo (+) 30,000 = 20,00 (4) 10,000 = —-) Soo 5. | C)do0 po 2, 299 NE [54,00 (+) 500 (+) Bo, 2 = A000 (4) (00(+) £4, Yeo 6. lQ5000 © 5, ov ——— 2 =< a BY Soo © leew + aa + Baye = Ram Joo = 64, 408 (Pura BIOTIES z= NA SSETS = Crestor Ra wml'C ast [Sto00 Ouilstawding Salary 158 Paegaad ent 508 Capita 64,402 BY S00 By Soo | Banleasset | 12. Raghunath had the following transactions in an accounting year: a. a business with £50,000. -€7\9) Zio Gall) | Paiainconankeenoooa — 2 ar aepre — WH Purchased goods for cash(¥ 20,000)and credit 30,000)" DOP Serv Sold goods for cash & 40,000 costing % 30,000, & Rent paid % 500, ——" Cammy Cape>d Rent outstanding € 100. —__Lial (+) Cap (-) : at LabG) Ass CO) Bought furniture % 5,000 on(redit) Bought refrigerator for persomaljase & 5,000. Cash(-> Gopal (-> 4%, Purchased motoreyele for cash % 20,000. — Asatlt)~ Cada Treate an AeountingMquAtIOn to show the effect of the above and also’ [Assets: Cash % 34,500 + Bank % 10,000 + Stock ® 20,000 + Furniture & 5,000 + Motorcycle % 20,000 = Liabilities: Creditors % 30,000 + Outstanding Rent % 100 + Vendor for Furniture % 5,000 + Capital: % 54, 400.) ASSETS 2 gt LIABILITIES Jy + CAPITAL Sno] CASH Bank Sint Fimnatle Mot Gaubitor Rext Lyle ols. 1. | 50,000 = So, 555 3 (p10, 000 + 10,000 be TUe ann + tn ano ~ a 4+ Sa non2 (10,000 + lo,000 = NE | 40,000 + (0,000 = ° + 50,000 3, [2,000 +5», 000 2 30,5 j€ |e,000 + 10,200 +S5:,er0 + 0,00 + 50,090 4. fhe. €)3o, 020 = + [o, 600 WE [60,07 + loom + Qo odd = 3e,00d + 60,000 5. |500 O S$ NE [B%500 + [oem + Qo ve > Bom $59 500 ¢ + loo ©) loo NE [54500 + loow + Avow = e000 + loo + 51400 a +5o00 + Sooo. NE |St500 + low + Qocv + Sov = 3ro00 + lod + Sov +5100 4. E5200 >So NE [545° + |v 100 t doo + Soon > Boom loo +See + 54, Yoo 4. Eee toes F-€ [Bi500 + lore t 2ovm+ Sov 4 Aecov = Zovmtloot Som+tS4,Yoo Ballomnte Shoat LIABITIES = ASseTs = Cncai hes 30, 000 a 34,500 ° ani lo, 000 ols Ret Woo | eR Ro, a0 Creditors fre fravchute 5 oo Capital Ac, ieoicn an for Pron on seeouneng sana @@ v. eer %60,000; machin transactions: ),000 and 7 sige by cheque; Cagitak = 360,000 — © M TMararonmnaiabovelwoods sold at a and BE of the S758 received in cash. GF Depreciation on me EFS vided FRAT = |0, 00 sees ‘Cash withdrawn for personal use 210.0009 Cash (> Gpl-) Drawlye G LOe > Be5 Capita Ch) Cap itader 4 W Goods sold to Gupta for T 10,000 and received a Bill Receivable for the same amount (for 3 months. \ (gg) Received: MO OOO HFORIGHptw against the [Assets: Cash % 61,000 + Bank % 1,00,000 + Stock (goods) % 30,000 + Machinery % 90,000 + Furniture % 50,000 + Debtors & 11,000 = Liabilities: Nil + Capital: % 3,42,000.] |Sol:- ASSETS = rabilthes + Capiteh Sts -| Gh Bok StoK Maihine Farm Oebbre 8) Seo0o + 190,000 + 6,900 + lovee + Soo00 = bo, 000 2. |Fllov0 29,000 (allooo > @ 2,000 N-E |blovo + lov000 + Yov00 + [v0 5¥+ Soo00+ [I wa : o + B6RorD 3 G)]oo00 © leer ENE [blo +|ov0m + Yer +4000 + Srae-+| 02> 2 ° + 352000 4. tooo - ©) Io oa [NE Plooo tram ty rm +4 sv-+ Sue + |e ~ } +34 220 5 G&) Soo G> Seo 6. loo, (4) 10000 NE [lod Hewrre 4 Zerm +400 + Csr +\|50 +\ oom = O 4. BYRD > [Ho000 ©) lvo0 [61,00 +0400 + 30004-40000 +S 0000+ llov0 + 0 = Oo + 342,000 ————— es —— a wmssoe(4) profit to}. 2, 000 aga Gap + 22,00d (Sake Value) Se 16, Show an Accounting Equation on the basis of the following transactions: ie Udi Sunil started business with cash ——————_______—~ 150,000 \G Opened a(Bank Account )by depositing % 25,000(ut of cash) & Si He sold his personal car for £50,000 and deposited the amount 5 is G et in the firm's Bank Account Sg a Eg ii He Soe ea ern 1,00,000 He purchased goods from Ram oneredit —S@K@) __Wsditnec> 59,000 Gas He pail Saree TRO ae sc (WAT. He sold to Shyam on gue goods Gosting € 6,000\f0F => aa (upay Received rent) from tenants re 1,000 ©) ir Received from tenants > [ama tar stan) > 1,500 Purchased stationery for cash fe Capit — 100 COA CS icra @ GA Ipvested in shares > Draw Cah Cap G2 —9 50,000 i Be ceived interest in cash gm Cash GF) > _ 200. ont Soe aR —— 25,000 ShKE) Cag > 500 (Assets: % 2,29,600 = Liabilities: % 51,500 + Capital: € 1,78,100.] Introduced fresh capital (iy Goods(destroyed b[Assets: % 2,29,600 = Liabilities: & 51,500 + Capital: € 1, 78,100] Sal: GEES “Liapiities + CAPITAL Bia ts Shia | Cash Bank tbe sue Det eebhine—Seaiotts 0) 150,000 150,000 (i) AS,10 A500 N-€ |1A5 000 + 25000 0 + (So, om wo + 50000 + So,o00 NE |15,000 + 715,000 0 + 00,000 W Popo + po 000 Ne [25,900 + ovo + loo, oo» : ° 420,000 ¥) +50D00 = 50,000 NE |Abvvo + So + lov 000 + Soooo + 50,000 + 200,000 (4) Seo = Q Sao NE [R4500 +15 900 + J00,900 + 50000 > So, 000 + 181,500 way bono +4000 : + 3,000 NE RA5o0 + Spo» + loo, 000 + 4Yor + ooo So,v00 +40R S00 (iit) [Hove + 1,000 NE 5,500 +7500 + loo ono +44oo +4000 50,000 +03, Soo (boo + | 500 WE [RIy00 + WSt00 + looow +4 ew + 4 FD = Soom + \Soo 4.263500 (on) [erleo : GD Joo NE |Abqoo + Wem lem 44 yom44 om = Soomt\Soo 4.203 Yoo aw) (50000 CO) 50cm NE Xb 00 + AGo00 + |UD Fa +44 ro +4 oad = Soom + \Spo $153,400 wi) () 200 4 20d WE [Ra loe FAS 06 tIo0, 096 + UYem + Gov = 5p,000 +1500 +153,600 (xi) (25000. i + 25000 NG |$4,l00 +25000 +160 000 + Yoo + 4000 = Soom +(Soo + 178, 660 Ww (500 E> S00 F-€ |52, 0» + a5 200 + In0000 + 43 500 + { o00 = Soom +|5v0 +118, |oo IHS ' RHSfe [Piles 45 900 + [00400 + 43 500+ | 000 = Soowt|5o0 +18, 160 LHS. RM, 00 LIABILITIES Assets uw ue s v v Y a u AAA boo 2AN600 3 Marks ® (elustahon Avack eability 2 Gpitel3 Marks * (olutahon_of Aes Liability Gap ited © Assets = Liabilen + pra ior) ® —Prohe = Revewe OY Expense Pnfit 1s added tothe ® Addcnal st etn Dear ie cols) . 000 x. If the capital of a business is € 3,00,000 and liabilities are % 50,000, 168SR70}000) calculate the total assets of the business. 5 i [® 2,80,000) Labilthes + Gpited,.” = 50,000 + : Sel Assets = ° 230,000Ls Apail Re 31 Maxdh 20 21 Capita > 30,000 Assets = 50,000 Jeerg® abilities = \o,000 dod oo soot Gel - img Assets s avy Labi ning Asee’ = dering \itien \0, vo + Cooly a weeny Capita = Yo, 000 pyr = dong Gill + Atawivgs — Abdehowat — eT pst = Yo,000 + 0 = 0 = Boos = 10,680 So, 500 Pref ie Seow -Yo ovo 1o, 000Sal {pel a ae = co Assels = Uabalches + Capita cp fF 15,000 + ]Soeo0 000 vw Credity uf = 40,000 Cuabilyy = -7 b) 15, —) Kroo > 8 = C After i v00 (- a > B00 _— es Assets = Vober Gapitah = \S,000 + 12,00a) Apa 3) Macedh pe t ‘tad deavo wat ap nike Ub} Cate Sool sting Gpits = lo000 —Yoo. + 5s0o = filjeea” ») Capi tal = |Bo0o Linde ity = QSo00 Toth Awets = A500 + \Rooo =Me oe P$W dea AAdational, t 0 Te talk apaek Roo, Cit Tae Gap itad it Ubi = Sooo 74 Le, 806 Sel’ 31 Mardy Assets = Labilities +> Gopi Qoo,000 = Gobo Gpitek ve Closing Goth = 1,44, 000 t= Opting veins = oud = - 6 rm Gagitd ” Mei Papas Qoovo = 94000 + [R00S — Roooe — Sperry Capi tet Openirg lapttas = Arb, p00 = Roovr - Ro co = (66, woo Sol. Lapel fh Fea _t = chott ih + dv - Addo - 6 re ap a= apa = (21,500 + 1500 - |2,500 - 25,000 (- ) Lows)LIA BILITY Sal i) BL Marth 9 Uoving Capit = 3,p0,000 + 1S0,v00 450,000 31 Mach > Tote ames = (5, 00,000 (Given) 3) Marth = Labi lity = [500000 — 450000 2 10,50, 000 Bl Mavdn > liability = (5,00,000 ~ 5,4o,000 = \760,008 x x x x oa Wa,