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Effect of transaction on for balance sheet . 1 shared statred a business with cash. Rs 30000 2 purchased machinary from Ravi rs 10000 3 purchased furniture for cash rs 3000 4 paid salary range 500 5 purchased goods for cash rs 10000 6 withdrew cash for private use rs 1000 7 outstanding rent rs 500?
Most Upvoted Answer
Effect of transaction on for balance sheet . 1 shared statred a busine...
Effect of transactions on the balance sheet:
1. Shared cash investment of Rs 30,000:
- Increase in the cash asset on the balance sheet by Rs 30,000.
- No effect on other balance sheet items.
2. Purchased machinery from Ravi for Rs 10,000:
- Increase in machinery asset on the balance sheet by Rs 10,000.
- Decrease in cash asset by Rs 10,000.
- No effect on other balance sheet items.
3. Purchased furniture for cash for Rs 3,000:
- Increase in furniture asset on the balance sheet by Rs 3,000.
- Decrease in cash asset by Rs 3,000.
- No effect on other balance sheet items.
4. Paid salary in cash for Rs 500:
- Decrease in cash asset by Rs 500.
- Decrease in retained earnings or increase in the expense on the balance sheet by Rs 500.
- No effect on other balance sheet items.
5. Purchased goods for cash for Rs 10,000:
- Increase in inventory asset on the balance sheet by Rs 10,000.
- Decrease in cash asset by Rs 10,000.
- No effect on other balance sheet items.
6. Withdrew cash for private use for Rs 1,000:
- Decrease in cash asset by Rs 1,000.
- Decrease in retained earnings or increase in drawings on the balance sheet by Rs 1,000.
- No effect on other balance sheet items.
7. Outstanding rent for Rs 500:
- Increase in accounts payable liability on the balance sheet by Rs 500.
- No effect on other balance sheet items.
Summary of balance sheet changes:
- Cash asset:
- Increased by Rs 30,000 (initial investment).
- Decreased by Rs 10,000 (machinery purchase).
- Decreased by Rs 3,000 (furniture purchase).
- Decreased by Rs 500 (salary payment).
- Decreased by Rs 10,000 (goods purchase).
- Decreased by Rs 1,000 (cash withdrawal).
- Net increase of Rs 5,500.
- Machinery asset:
- Increased by Rs 10,000 (purchase from Ravi).
- Furniture asset:
- Increased by Rs 3,000 (cash purchase).
- Inventory asset:
- Increased by Rs 10,000 (cash purchase of goods).
- Accounts payable liability:
- Increased by Rs 500 (outstanding rent).
- Retained earnings:
- Decreased by Rs 500 (salary payment).
- Decreased by Rs 1,000 (cash withdrawal).
- Drawings:
- Increased by Rs 1,000 (cash withdrawal).
Note: The above analysis assumes that the business initially had no assets, liabilities, or equity.
1. Shared cash investment of Rs 30,000:
- Increase in the cash asset on the balance sheet by Rs 30,000.
- No effect on other balance sheet items.
2. Purchased machinery from Ravi for Rs 10,000:
- Increase in machinery asset on the balance sheet by Rs 10,000.
- Decrease in cash asset by Rs 10,000.
- No effect on other balance sheet items.
3. Purchased furniture for cash for Rs 3,000:
- Increase in furniture asset on the balance sheet by Rs 3,000.
- Decrease in cash asset by Rs 3,000.
- No effect on other balance sheet items.
4. Paid salary in cash for Rs 500:
- Decrease in cash asset by Rs 500.
- Decrease in retained earnings or increase in the expense on the balance sheet by Rs 500.
- No effect on other balance sheet items.
5. Purchased goods for cash for Rs 10,000:
- Increase in inventory asset on the balance sheet by Rs 10,000.
- Decrease in cash asset by Rs 10,000.
- No effect on other balance sheet items.
6. Withdrew cash for private use for Rs 1,000:
- Decrease in cash asset by Rs 1,000.
- Decrease in retained earnings or increase in drawings on the balance sheet by Rs 1,000.
- No effect on other balance sheet items.
7. Outstanding rent for Rs 500:
- Increase in accounts payable liability on the balance sheet by Rs 500.
- No effect on other balance sheet items.
Summary of balance sheet changes:
- Cash asset:
- Increased by Rs 30,000 (initial investment).
- Decreased by Rs 10,000 (machinery purchase).
- Decreased by Rs 3,000 (furniture purchase).
- Decreased by Rs 500 (salary payment).
- Decreased by Rs 10,000 (goods purchase).
- Decreased by Rs 1,000 (cash withdrawal).
- Net increase of Rs 5,500.
- Machinery asset:
- Increased by Rs 10,000 (purchase from Ravi).
- Furniture asset:
- Increased by Rs 3,000 (cash purchase).
- Inventory asset:
- Increased by Rs 10,000 (cash purchase of goods).
- Accounts payable liability:
- Increased by Rs 500 (outstanding rent).
- Retained earnings:
- Decreased by Rs 500 (salary payment).
- Decreased by Rs 1,000 (cash withdrawal).
- Drawings:
- Increased by Rs 1,000 (cash withdrawal).
Note: The above analysis assumes that the business initially had no assets, liabilities, or equity.
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Effect of transaction on for balance sheet . 1 shared statred a business with cash. Rs 30000 2 purchased machinary from Ravi rs 10000 3 purchased furniture for cash rs 3000 4 paid salary range 500 5 purchased goods for cash rs 10000 6 withdrew cash for private use rs 1000 7 outstanding rent rs 500?
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Effect of transaction on for balance sheet . 1 shared statred a business with cash. Rs 30000 2 purchased machinary from Ravi rs 10000 3 purchased furniture for cash rs 3000 4 paid salary range 500 5 purchased goods for cash rs 10000 6 withdrew cash for private use rs 1000 7 outstanding rent rs 500? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Effect of transaction on for balance sheet . 1 shared statred a business with cash. Rs 30000 2 purchased machinary from Ravi rs 10000 3 purchased furniture for cash rs 3000 4 paid salary range 500 5 purchased goods for cash rs 10000 6 withdrew cash for private use rs 1000 7 outstanding rent rs 500? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Effect of transaction on for balance sheet . 1 shared statred a business with cash. Rs 30000 2 purchased machinary from Ravi rs 10000 3 purchased furniture for cash rs 3000 4 paid salary range 500 5 purchased goods for cash rs 10000 6 withdrew cash for private use rs 1000 7 outstanding rent rs 500?.
Effect of transaction on for balance sheet . 1 shared statred a business with cash. Rs 30000 2 purchased machinary from Ravi rs 10000 3 purchased furniture for cash rs 3000 4 paid salary range 500 5 purchased goods for cash rs 10000 6 withdrew cash for private use rs 1000 7 outstanding rent rs 500? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Effect of transaction on for balance sheet . 1 shared statred a business with cash. Rs 30000 2 purchased machinary from Ravi rs 10000 3 purchased furniture for cash rs 3000 4 paid salary range 500 5 purchased goods for cash rs 10000 6 withdrew cash for private use rs 1000 7 outstanding rent rs 500? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Effect of transaction on for balance sheet . 1 shared statred a business with cash. Rs 30000 2 purchased machinary from Ravi rs 10000 3 purchased furniture for cash rs 3000 4 paid salary range 500 5 purchased goods for cash rs 10000 6 withdrew cash for private use rs 1000 7 outstanding rent rs 500?.
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