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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?
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Prepare accounting equation from the following: (1) started business w...
Cash + Stock + Debtors =Commission +Capital 75000 +25000 + 0 =0 +1000000 -20000 +25000 =0 +50005000 +0 +0 =5000 +080000 +5000 +25000 =5000 +105000110000 = 110000Here goods are sold at 25000 so only debtors and the profit 5000 is added to capital.Also commission received in advance is a liability.Hope you understand.
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Prepare accounting equation from the following: (1) started business w...
Accounting Equation
The accounting equation is:
Assets = Liabilities + Owner's Equity
Transaction 1
Started business with cash Rs 75000 and goods Rs 25000.
- Assets: Cash Rs 75000 + Goods Rs 25000 = Rs 100000
- Liabilities: None
- Owner's Equity: None
Transaction 2
Goods costing Rs 20000 sold on credit at a profit of 25%.
- Assets: Cash Rs 75000 + Goods Rs 5000 (25% profit on Rs 20000) = Rs 80000
- Liabilities: None
- Owner's Equity: None
Transaction 3
Received commission in advance Rs 5000.
- Assets: Cash Rs 75000 + Goods Rs 5000 (25% profit on Rs 20000) + Commission in advance Rs 5000 = Rs 85000
- Liabilities: None
- Owner's Equity: None
The accounting equation after all the transactions is:
- Assets: Rs 85000
- Liabilities: None
- Owner's Equity: None
As there are no liabilities or owner's equity, the entire asset value of Rs 85000 belongs to the owner.
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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?
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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? 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 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? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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?.
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? 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 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? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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?.
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