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Transaction of Mohan Traders gvien below. Show the effect of the these transactions on assets, liability,and capital with the help of accounting equation a.Business started with cash₹100000 b.cash purchase₹50000 c .cash sales of₹60000?
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Transaction of Mohan Traders gvien below. Show the effect of the these...
**Effect of Transactions on Assets, Liabilities, and Capital**
To analyze the effect of the given transactions on assets, liabilities, and capital, we can use the accounting equation: Assets = Liabilities + Capital.
1. **Business started with cash ₹100000:**
- Assets: Cash increases by ₹100000.
- Liabilities: No change.
- Capital: Capital increases by ₹100000.
2. **Cash purchase ₹50000:**
- Assets: Cash decreases by ₹50000.
- Liabilities: No change.
- Capital: No change.
3. **Cash sales of ₹60000:**
- Assets: Cash increases by ₹60000.
- Liabilities: No change.
- Capital: No change.
**Summary of Effects:**
- From the given transactions, the business started with cash of ₹100000, which increased the assets and capital by the same amount.
- The cash purchase transaction reduced the cash by ₹50000, but since there is no change in liabilities or capital, the overall effect on the accounting equation is a decrease in assets.
- The cash sales transaction increased the cash by ₹60000, but again, there is no change in liabilities or capital, so the effect on the accounting equation is an increase in assets.
**Final Accounting Equation:**
- After considering all the transactions, the final accounting equation would be:
Assets = (₹100000 - ₹50000 + ₹60000) = ₹110000
Liabilities = No change
Capital = ₹100000
Therefore, the assets have increased to ₹110000 due to the cash sales transaction, while the liabilities and capital remain the same. The capital still stands at ₹100000, representing the initial investment made by the business owner.
To analyze the effect of the given transactions on assets, liabilities, and capital, we can use the accounting equation: Assets = Liabilities + Capital.
1. **Business started with cash ₹100000:**
- Assets: Cash increases by ₹100000.
- Liabilities: No change.
- Capital: Capital increases by ₹100000.
2. **Cash purchase ₹50000:**
- Assets: Cash decreases by ₹50000.
- Liabilities: No change.
- Capital: No change.
3. **Cash sales of ₹60000:**
- Assets: Cash increases by ₹60000.
- Liabilities: No change.
- Capital: No change.
**Summary of Effects:**
- From the given transactions, the business started with cash of ₹100000, which increased the assets and capital by the same amount.
- The cash purchase transaction reduced the cash by ₹50000, but since there is no change in liabilities or capital, the overall effect on the accounting equation is a decrease in assets.
- The cash sales transaction increased the cash by ₹60000, but again, there is no change in liabilities or capital, so the effect on the accounting equation is an increase in assets.
**Final Accounting Equation:**
- After considering all the transactions, the final accounting equation would be:
Assets = (₹100000 - ₹50000 + ₹60000) = ₹110000
Liabilities = No change
Capital = ₹100000
Therefore, the assets have increased to ₹110000 due to the cash sales transaction, while the liabilities and capital remain the same. The capital still stands at ₹100000, representing the initial investment made by the business owner.
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Transaction of Mohan Traders gvien below. Show the effect of the these transactions on assets, liability,and capital with the help of accounting equation a.Business started with cash₹100000 b.cash purchase₹50000 c .cash sales of₹60000?
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Transaction of Mohan Traders gvien below. Show the effect of the these transactions on assets, liability,and capital with the help of accounting equation a.Business started with cash₹100000 b.cash purchase₹50000 c .cash sales of₹60000? 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 Transaction of Mohan Traders gvien below. Show the effect of the these transactions on assets, liability,and capital with the help of accounting equation a.Business started with cash₹100000 b.cash purchase₹50000 c .cash sales of₹60000? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Transaction of Mohan Traders gvien below. Show the effect of the these transactions on assets, liability,and capital with the help of accounting equation a.Business started with cash₹100000 b.cash purchase₹50000 c .cash sales of₹60000?.
Transaction of Mohan Traders gvien below. Show the effect of the these transactions on assets, liability,and capital with the help of accounting equation a.Business started with cash₹100000 b.cash purchase₹50000 c .cash sales of₹60000? 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 Transaction of Mohan Traders gvien below. Show the effect of the these transactions on assets, liability,and capital with the help of accounting equation a.Business started with cash₹100000 b.cash purchase₹50000 c .cash sales of₹60000? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Transaction of Mohan Traders gvien below. Show the effect of the these transactions on assets, liability,and capital with the help of accounting equation a.Business started with cash₹100000 b.cash purchase₹50000 c .cash sales of₹60000?.
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