The accounting equation is Assets = Liabilities + Owner’s Equity.

(a) Paramjeet commenced business with Rs.11,50,000. Assets: Rs.11,50,000 (Cash) Liabilities: None Owner’s Equity: Rs.11,50,000

(b) Wages paid Rs.4,000 and outstanding Rs.6,000. Assets: Rs.11,50,000 (Cash) Liabilities: Rs.6,000 (Outstanding Wages) Owner’s Equity: Rs.11,50,000

(c) Goods purchased for Rs.80,000. Assets: Rs.11,50,000 (Cash) + Rs.80,000 (Inventory) Liabilities: Rs.6,000 (Outstanding Wages) Owner’s Equity: Rs.11,50,000

(d) Computer purchased from Star Computers worth Rs.30,000 and paid half the amount in cash. Assets: Rs.11,50,000 (Cash) + Rs.80,000 (Inventory) + Rs.15,000 (Computer) Liabilities: Rs.6,000 (Outstanding Wages) Owner’s Equity: Rs.11,50,000

(e) Invested Rs.90,000 into the bank. Assets: Rs.11,50,000 (Cash) + Rs.80,000 (Inventory) + Rs.15,000 (Computer) + Rs.90,000 (Bank) Liabilities: Rs.6,000 (Outstanding Wages) Owner’s Equity: Rs.11,50,000

(f) Goods purchased from Vaibhav for Rs.8,000 and made the payment by cheque. Assets: Rs.11,50,000 (Cash) + Rs.80,000 (Inventory) + Rs.15,000 (Computer) + Rs.90,000 (Bank) Liabilities: Rs.6,000 (Outstanding Wages) Owner’s Equity: Rs.11,50,000

(g) Purchased a building for Rs.6,00,000 and the payment was made by cash. Assets: Rs.11,50,000 (Cash) + Rs.80,000 (Inventory) + Rs.15,000 (Computer) + Rs.90,000 (Bank) + Rs.6,00,000 (Building) Liabilities: Rs.6,000 (Outstanding Wages) Owner’s Equity: Rs.11,50,000

(h) 1/2 of the stock available was sold to Mohit at a profit of 20% on cost. Assets: Rs.11,50,000 (Cash) + Rs.80,000 (Inventory - 1/2 of the stock) Liabilities: Rs.6,000 (Outstanding Wages) Owner’s Equity: Rs.11,50,000 + (20% profit on cost of 1/2 of the stock)

Balance Sheet:

Assets: Cash: Rs.11,50,000 Inventory: Rs.40,000 (1/2 of the stock remaining) Computer: Rs.15,000 Bank: Rs.90,000 Building: Rs.6,00,000

Liabilities: Outstanding Wages: Rs.6,000

Owner’s Equity: Capital: Rs.11,50,000 Profit: (20% profit on cost of 1/2 of the stock)