The accounting equation is Assets = Liabilities + Owner’s Equity.
(a) Paramjeet commenced business with Rs.11,50,000. Assets: Rs.11,50,000 Liabilities: 0 Owner’s Equity: Rs.11,50,000
(b) Wages paid Rs.4,000 and outstanding Rs.6,000. Assets: Rs.11,50,000 Liabilities: Rs.6,000 Owner’s Equity: Rs.11,50,000
(c) Goods purchased for Rs.80,000. Assets: Rs.11,50,000 + Rs.80,000 = Rs.12,30,000 Liabilities: Rs.6,000 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.12,30,000 + Rs.30,000 = Rs.12,60,000 Liabilities: Rs.6,000 Owner’s Equity: Rs.11,50,000
(e) Invested Rs.90,000 into the bank. Assets: Rs.12,60,000 + Rs.90,000 = Rs.13,50,000 Liabilities: Rs.6,000 Owner’s Equity: Rs.11,50,000 + Rs.90,000 = Rs.12,40,000
(f) Goods purchased from Vaibhav for Rs.8,000 and made the payment by cheque. Assets: Rs.13,50,000 + Rs.8,000 = Rs.13,58,000 Liabilities: Rs.6,000 Owner’s Equity: Rs.12,40,000
(g) Purchased a building for Rs.6,00,000 and the payment was made by cash. Assets: Rs.13,58,000 + Rs.6,00,000 = Rs.19,58,000 Liabilities: Rs.6,000 Owner’s Equity: Rs.12,40,000
(h) 1/2 of the stock available was sold to Mohit at a profit of 20% on cost. Assets: Rs.19,58,000 - (1/2 * cost of stock sold) Liabilities: Rs.6,000 Owner’s Equity: Rs.12,40,000 + (Profit on sale of stock)
Balance Sheet:
Assets: - Cash: Rs.6,00,000 - Bank: Rs.90,000 - Stock: (Remaining stock value) - Building: Rs.6,00,000 - Total Assets: (Sum of above)
Liabilities: Rs.6,000
Owner’s Equity: Rs.12,40,000 + (Profit on sale of stock)
The final balances for each account can be calculated based on the given transactions.
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