1. Started Business With Cash Rs 40000. 2 Goods Purchased On Credit Rs 20000. 3. Rent Received Rs 2000. 4. Accrued Rent Rs 1000. 5. Interest Received Rs 1500.?

Question

Answer

Started Business With Cash Rs 40000

The business was started with an initial investment of Rs 40000 in cash. This amount would be recorded as the owner's capital in the accounting books.

Goods Purchased On Credit Rs 20000

The business made a purchase of goods worth Rs 20000 on credit. This means that the payment for these goods will be made at a later date, typically within a specified credit period. The credit purchase would be recorded as an accounts payable liability in the books of accounts.

Rent Received Rs 2000

The business received Rs 2000 as rent. This indicates that the business owns a property or an asset that is being rented out to generate additional income. The rent received would be recorded as rental income in the books of accounts.

Accrued Rent Rs 1000

The business has accrued Rs 1000 as rent. Accrued rent refers to the rent that has been earned but not yet received. It is recorded as an accounts receivable in the books of accounts. This indicates that the business is entitled to receive the rent at a later date.

Interest Received Rs 1500

The business received Rs 1500 as interest. This could be interest earned on investments or loans given to other parties. The interest received would be recorded as interest income in the books of accounts.

Overall, these transactions represent the financial activities of the business, including the initial investment, credit purchases, rental income, accrued rent, and interest income. These transactions would be recorded in appropriate accounts in the accounting books to maintain an accurate record of the business's financial position and performance.

Answer

Got - a/C -leadger

Similar Class 11 Doubts

Prepare accounting equation from the following: (1) started business with cash Rs 75000 and goods Rs 25000. (2) Goods costing Rs 20000 sold on credit at a profit of 25%. (3) Received commission in advance Rs 5000?

Show the effect of the following transaction on the accounting equation (1) started business with cash ₹50000 (2) salaries paid ₹ 2000 (3) wages outstanding ₹ 200 (4) interest due but not paid ₹100 (5) Rent paid in advance ₹ 150?

Prepare Accounting Equation from the following: (

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