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Goods costing 75000 sold at profit of 331/3% half of payment received in cash.mam plz make a accounting equation?
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Goods costing 75000 sold at profit of 331/3% half of payment received ...
Cash increase karo 50000 stock se decrease karo 75000 debtor 50000 and capital me add karo 25000 as it is a profit
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Goods costing 75000 sold at profit of 331/3% half of payment received ...
Understanding the Transaction
To create an accounting equation for the given transaction, we first need to understand the details:
- Cost of Goods = 75,000
- Profit Percentage = 33 1/3% (which is equivalent to 33.33% or 0.3333)
- Payment Terms: Half in cash
Calculating Selling Price
- The profit amount can be calculated as:
- Therefore, the Selling Price (SP) can be calculated as:
Payment Breakdown
- Since half of the payment is received in cash, we have:
Accounting Equation
The basic accounting equation can be expressed as:
Assets = Liabilities + Equity
In our case, it translates to:
Cash + Accounts Receivable = Revenue - Expenses
Substituting the values:
50,000 (Cash) + 50,000 (Accounts Receivable) = 100,000 (Revenue) - 75,000 (Cost of Goods Sold)
Final Equation
Thus, the final accounting equation representing this transaction is:
100,000 = 75,000 + 25,000
This equation shows that the assets (cash and receivables) equal the liabilities and equity, maintaining the balance in accounting.
To create an accounting equation for the given transaction, we first need to understand the details:
- Cost of Goods = 75,000
- Profit Percentage = 33 1/3% (which is equivalent to 33.33% or 0.3333)
- Payment Terms: Half in cash
Calculating Selling Price
- The profit amount can be calculated as:
- Profit = Cost × Profit Percentage
- Profit = 75,000 × 0.3333 = 25,000
- Therefore, the Selling Price (SP) can be calculated as:
- SP = Cost + Profit
- SP = 75,000 + 25,000 = 100,000
Payment Breakdown
- Since half of the payment is received in cash, we have:
- Cash Received = SP / 2 = 100,000 / 2 = 50,000
- Credit (Accounts Receivable) = 50,000
Accounting Equation
The basic accounting equation can be expressed as:
Assets = Liabilities + Equity
In our case, it translates to:
Cash + Accounts Receivable = Revenue - Expenses
Substituting the values:
50,000 (Cash) + 50,000 (Accounts Receivable) = 100,000 (Revenue) - 75,000 (Cost of Goods Sold)
Final Equation
Thus, the final accounting equation representing this transaction is:
100,000 = 75,000 + 25,000
This equation shows that the assets (cash and receivables) equal the liabilities and equity, maintaining the balance in accounting.
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Goods costing 75000 sold at profit of 331/3% half of payment received in cash.mam plz make a accounting equation?
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Goods costing 75000 sold at profit of 331/3% half of payment received in cash.mam plz make a accounting equation? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Goods costing 75000 sold at profit of 331/3% half of payment received in cash.mam plz make a accounting equation? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods costing 75000 sold at profit of 331/3% half of payment received in cash.mam plz make a accounting equation?.
Goods costing 75000 sold at profit of 331/3% half of payment received in cash.mam plz make a accounting equation? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Goods costing 75000 sold at profit of 331/3% half of payment received in cash.mam plz make a accounting equation? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods costing 75000 sold at profit of 331/3% half of payment received in cash.mam plz make a accounting equation?.
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