Accounting Equation

Problem 01
Problem 2: Show the effect of following transaction on
accounting equation and draw a new balance sheet.

1. On 01/04/15 Mr X started a Balance sheet by

introducing capital of 75,000 by depositing money into
the bank.
2. On 02/04/15 He withdraw 25,000 from the bank
3. On 05/04/15 purchased goods for 15,000 on credit
from Raju. payable after 3 month.
4. On 10/04/15 purchased furniture Rs. 8,000,
machinery 12,000. and office computer 20,000
payment was made by cheque.
5. 15/04/15 he took a bank loan of 35,000.
 Problem 3
• Prove that accounting equation is satisfied of each equation given
below.
• Mr. Z started business with Rs.50,000 brought in cash.
• He purchased goods for cash Rs. 5,000
• He purchased goods on credit for Rs.10,000
• He sold goods for cash Rs.6,000(cost price of goods was Rs.4,000)
• He withdraw Rs.1000 for personal expenses
• Paid rent Rs 500
• Rent outstanding Rs.300(expenses)
• He sold goods for cash Rs.3,000(cost price of goods was Rs.2,000)
 Problem 04
• From the following transaction analyze the effects of various transaction given below
on accounting equation.
• On 01/03/17 Mr. Suresh starts softofon machine as a partnership business for
providing software service.
• The balance sheet engaged in the following transaction on march 2017.
• 01/03 Suresh commence business with cash Rs. 50,000
• 02/03 borrows a loan from Mahesh Rs, 20,000
• On 03/03 buys a computer for cash Rs, 58,000
• On 06/03 buys supply on credit Rs, 6,000
• On 09/03 sells software for cash Rs. 12,000
• 12/02 pays for a part of supply bought on 03/06 Rs.2,000
• 17/03 uses supply for personal use for Rs. 1,000
• 23/03 Returns defective supply for immediate refund Rs. 1,900
• 26/03 pays salary’s of Rs. 4,000 and office rent Rs 1,200
• 29/03 sells software on credit Rs. 8,000
• 30/03 withdraw cash for personal use Rs. 3,000
• 31/03 uses supply for business purpose Rs. 1,400