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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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Prove that the Accounting Equation is satisfied in all the following t...
Proving Accounting Equation and Preparing Balance Sheet for Rajaram's Transactions
Introduction: In this question, we will prove that the accounting equation is satisfied in all transactions of Rajaram and prepare a balance sheet for the same.
Step 1: Understanding the Accounting Equation
The accounting equation is Assets = Liabilities + Owner's Equity. This equation represents the fundamental relationship between a company's assets, liabilities, and owner's equity.
Step 2: Analyzing Rajaram's Transactions
1. Started business with Cash ₹ 1,20,000.
- Assets: Cash ₹ 1,20,000
- Liabilities: None
- Owner's Equity: Capital ₹ 1,20,000
2. Purchased a typewriter for Cash for ₹ 8,000 for office use.
- Assets: Cash ₹ 1,12,000 (1,20,000 - 8,000), Typewriter ₹ 8,000
- Liabilities: None
- Owner's Equity: Capital ₹ 1,20,000
3. Purchased goods for ₹ 50,000 for cash.
- Assets: Cash ₹ 62,000 (1,12,000 + 50,000), Typewriter ₹ 8,000, Goods ₹ 50,000
- Liabilities: None
- Owner's Equity: Capital ₹ 1,20,000
4. Purchased goods for ₹ 40,000 on credit.
- Assets: Cash ₹ 62,000, Typewriter ₹ 8,000, Goods ₹ 90,000 (50,000 + 40,000)
- Liabilities: Creditors ₹ 40,000
- Owner's Equity: Capital ₹ 1,20,000
5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit.
- Assets: Cash ₹ 62,000, Typewriter ₹ 8,000, Goods ₹ 30,000 (90,000 - 60,000)
- Liabilities: Creditors ₹ 40,000, Sales ₹ 80,000
- Owner's Equity: Capital ₹ 1,50,000 (1,20,000 + 30,000)
6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000.
- Assets: Cash ₹ 58,500 (62,000 - 1,500 - 2,000), Typewriter ₹ 8,000, Goods ₹ 30,000
- Liabilities: Creditors ₹ 40,000, Sales ₹ 80,000
- Owner's Equity: Capital ₹ 1,50,000
7. Received ₹ 800 for Commission.
- Assets: Cash ₹ 59,300 (58,500 + 800), Typewriter ₹ 8,000, Goods ₹ 30,000
- Liabilities: Creditors ₹ 40,000, Sales ₹ 80,000
- Owner's Equity: Capital ₹ 1,50,000
8. Withdrew for private use ₹ 5,000 in cash.
- Assets: Cash ₹ 54,300 (59,300 - 5,000), Typewriter ₹ 8,000, Goods ₹ 30,000
- Liabilities: Creditors ₹ 40,000, Sales ₹
Introduction: In this question, we will prove that the accounting equation is satisfied in all transactions of Rajaram and prepare a balance sheet for the same.
Step 1: Understanding the Accounting Equation
The accounting equation is Assets = Liabilities + Owner's Equity. This equation represents the fundamental relationship between a company's assets, liabilities, and owner's equity.
Step 2: Analyzing Rajaram's Transactions
1. Started business with Cash ₹ 1,20,000.
- Assets: Cash ₹ 1,20,000
- Liabilities: None
- Owner's Equity: Capital ₹ 1,20,000
2. Purchased a typewriter for Cash for ₹ 8,000 for office use.
- Assets: Cash ₹ 1,12,000 (1,20,000 - 8,000), Typewriter ₹ 8,000
- Liabilities: None
- Owner's Equity: Capital ₹ 1,20,000
3. Purchased goods for ₹ 50,000 for cash.
- Assets: Cash ₹ 62,000 (1,12,000 + 50,000), Typewriter ₹ 8,000, Goods ₹ 50,000
- Liabilities: None
- Owner's Equity: Capital ₹ 1,20,000
4. Purchased goods for ₹ 40,000 on credit.
- Assets: Cash ₹ 62,000, Typewriter ₹ 8,000, Goods ₹ 90,000 (50,000 + 40,000)
- Liabilities: Creditors ₹ 40,000
- Owner's Equity: Capital ₹ 1,20,000
5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit.
- Assets: Cash ₹ 62,000, Typewriter ₹ 8,000, Goods ₹ 30,000 (90,000 - 60,000)
- Liabilities: Creditors ₹ 40,000, Sales ₹ 80,000
- Owner's Equity: Capital ₹ 1,50,000 (1,20,000 + 30,000)
6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000.
- Assets: Cash ₹ 58,500 (62,000 - 1,500 - 2,000), Typewriter ₹ 8,000, Goods ₹ 30,000
- Liabilities: Creditors ₹ 40,000, Sales ₹ 80,000
- Owner's Equity: Capital ₹ 1,50,000
7. Received ₹ 800 for Commission.
- Assets: Cash ₹ 59,300 (58,500 + 800), Typewriter ₹ 8,000, Goods ₹ 30,000
- Liabilities: Creditors ₹ 40,000, Sales ₹ 80,000
- Owner's Equity: Capital ₹ 1,50,000
8. Withdrew for private use ₹ 5,000 in cash.
- Assets: Cash ₹ 54,300 (59,300 - 5,000), Typewriter ₹ 8,000, Goods ₹ 30,000
- Liabilities: Creditors ₹ 40,000, Sales ₹
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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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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 Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 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 Class 11 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. *?.
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 Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 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 Class 11 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. *?.
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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. *?, 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
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