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Prove that the Accounting Equation is satisfied in all the following transactions of Rajaram. Also prepare a Balance Sheet:− 1. Started business with Cash ₹ 1,20,000. 2. Purchased a typewriter for Cash for ₹ 8,000 for office use. 3. Purchased goods for ₹ 50,000 for cash. 4. Purchased goods for ₹ 40,000 on credit. 5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit. 6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000. 7. Received ₹ 800 for Commission. 8. Withdrew for private use ₹ 5,000 in cash.?
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Transactions of Rajaram



  1. Started business with Cash ₹ 1,20,000.

  2. Purchased a typewriter for Cash for ₹ 8,000 for office use.

  3. Purchased goods for ₹ 50,000 for cash.

  4. Purchased goods for ₹ 40,000 on credit.

  5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit.

  6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000.

  7. Received ₹ 800 for Commission.

  8. Withdrew for private use ₹ 5,000 in cash.



Proving the Accounting Equation


The Accounting Equation is Assets = Liabilities + Owner's Equity. Let's analyze each transaction to prove that the Accounting Equation is satisfied.


  1. Started business with Cash ₹ 1,20,000.


    • Assets increase: Cash ₹ 1,20,000

    • Owner's Equity increase: Capital ₹ 1,20,000


  2. Purchased a typewriter for Cash for ₹ 8,000 for office use.


    • Assets decrease: Cash ₹ 8,000

    • Assets increase: Office Equipment ₹ 8,000


  3. Purchased goods for ₹ 50,000 for cash.


    • Assets decrease: Cash ₹ 50,000

    • Assets increase: Inventory ₹ 50,000


  4. Purchased goods for ₹ 40,000 on credit.


    • Assets increase: Inventory ₹ 40,000

    • Liabilities increase: Accounts Payable ₹ 40,000


  5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit.


    • Assets decrease: Inventory ₹ 60,000

    • Assets increase: Accounts Receivable ₹ 80,000

    • Owner's Equity increase: Sales ₹ 80,000

    • Owner's Equity decrease: Cost of Goods Sold ₹ 60,000


  6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000.


    • Assets decrease: Cash ₹ 3,500

    • Owner's Equity decrease: Rent Expense ₹ 1,500

    • Owner's Equity decrease: Salaries Expense ₹ 2,000


  7. Received ₹ 800 for Commission.


    • Assets increase: Cash ₹ 800

    • Owner's Equity increase: Commission Earned ₹ 800


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Prove that the Accounting Equation is satisfied in all the following transactions of Rajaram. Also prepare a Balance Sheet:− 1. Started business with Cash ₹ 1,20,000. 2. Purchased a typewriter for Cash for ₹ 8,000 for office use. 3. Purchased goods for ₹ 50,000 for cash. 4. Purchased goods for ₹ 40,000 on credit. 5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit. 6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000. 7. Received ₹ 800 for Commission. 8. Withdrew for private use ₹ 5,000 in cash.?
Question Description
Prove that the Accounting Equation is satisfied in all the following transactions of Rajaram. Also prepare a Balance Sheet:− 1. Started business with Cash ₹ 1,20,000. 2. Purchased a typewriter for Cash for ₹ 8,000 for office use. 3. Purchased goods for ₹ 50,000 for cash. 4. Purchased goods for ₹ 40,000 on credit. 5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit. 6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000. 7. Received ₹ 800 for Commission. 8. Withdrew for private use ₹ 5,000 in cash.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Prove that the Accounting Equation is satisfied in all the following transactions of Rajaram. Also prepare a Balance Sheet:− 1. Started business with Cash ₹ 1,20,000. 2. Purchased a typewriter for Cash for ₹ 8,000 for office use. 3. Purchased goods for ₹ 50,000 for cash. 4. Purchased goods for ₹ 40,000 on credit. 5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit. 6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000. 7. Received ₹ 800 for Commission. 8. Withdrew for private use ₹ 5,000 in cash.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Prove that the Accounting Equation is satisfied in all the following transactions of Rajaram. Also prepare a Balance Sheet:− 1. Started business with Cash ₹ 1,20,000. 2. Purchased a typewriter for Cash for ₹ 8,000 for office use. 3. Purchased goods for ₹ 50,000 for cash. 4. Purchased goods for ₹ 40,000 on credit. 5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit. 6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000. 7. Received ₹ 800 for Commission. 8. Withdrew for private use ₹ 5,000 in cash.?.
Solutions for Prove that the Accounting Equation is satisfied in all the following transactions of Rajaram. Also prepare a Balance Sheet:− 1. Started business with Cash ₹ 1,20,000. 2. Purchased a typewriter for Cash for ₹ 8,000 for office use. 3. Purchased goods for ₹ 50,000 for cash. 4. Purchased goods for ₹ 40,000 on credit. 5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit. 6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000. 7. Received ₹ 800 for Commission. 8. Withdrew for private use ₹ 5,000 in cash.? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Prove that the Accounting Equation is satisfied in all the following transactions of Rajaram. Also prepare a Balance Sheet:− 1. Started business with Cash ₹ 1,20,000. 2. Purchased a typewriter for Cash for ₹ 8,000 for office use. 3. Purchased goods for ₹ 50,000 for cash. 4. Purchased goods for ₹ 40,000 on credit. 5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit. 6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000. 7. Received ₹ 800 for Commission. 8. Withdrew for private use ₹ 5,000 in cash.? defined & explained in the simplest way possible. Besides giving the explanation of Prove that the Accounting Equation is satisfied in all the following transactions of Rajaram. Also prepare a Balance Sheet:− 1. Started business with Cash ₹ 1,20,000. 2. Purchased a typewriter for Cash for ₹ 8,000 for office use. 3. Purchased goods for ₹ 50,000 for cash. 4. Purchased goods for ₹ 40,000 on credit. 5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit. 6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000. 7. Received ₹ 800 for Commission. 8. Withdrew for private use ₹ 5,000 in cash.?, a detailed solution for Prove that the Accounting Equation is satisfied in all the following transactions of Rajaram. Also prepare a Balance Sheet:− 1. Started business with Cash ₹ 1,20,000. 2. Purchased a typewriter for Cash for ₹ 8,000 for office use. 3. Purchased goods for ₹ 50,000 for cash. 4. Purchased goods for ₹ 40,000 on credit. 5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit. 6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000. 7. Received ₹ 800 for Commission. 8. Withdrew for private use ₹ 5,000 in cash.? has been provided alongside types of Prove that the Accounting Equation is satisfied in all the following transactions of Rajaram. Also prepare a Balance Sheet:− 1. Started business with Cash ₹ 1,20,000. 2. Purchased a typewriter for Cash for ₹ 8,000 for office use. 3. Purchased goods for ₹ 50,000 for cash. 4. Purchased goods for ₹ 40,000 on credit. 5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit. 6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000. 7. Received ₹ 800 for Commission. 8. Withdrew for private use ₹ 5,000 in cash.? theory, EduRev gives you an ample number of questions to practice Prove that the Accounting Equation is satisfied in all the following transactions of Rajaram. Also prepare a Balance Sheet:− 1. Started business with Cash ₹ 1,20,000. 2. Purchased a typewriter for Cash for ₹ 8,000 for office use. 3. Purchased goods for ₹ 50,000 for cash. 4. Purchased goods for ₹ 40,000 on credit. 5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit. 6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000. 7. Received ₹ 800 for Commission. 8. Withdrew for private use ₹ 5,000 in cash.? tests, examples and also practice Commerce tests.
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