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Prove that the accounting equation is satisfied in all the following transactions of Sudhir : i) Started business with cash Rs10,000 and goods Rs40,000. ii)Bought goods on cash Rs30,000 and on credit for Rs 20,000. iii)Goods costing Rs 48,000 sold at a profit of 20prcnt to Pranav. Half the payment required in cash. iv)Received cash from Pranav (customer) Rs 25,500 and allowed him a discount Rs 500?
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Prove that the accounting equation is satisfied in all the following t...
Proving the Accounting Equation in Sudhir's Transactions



  • Transaction 1: Started business with cash Rs10,000 and goods Rs40,000


    • Assets: Cash + Goods = Rs10,000 + Rs40,000 = Rs50,000

    • Equity: Capital = Rs50,000

    • The accounting equation is satisfied as Assets = Equity.



  • Transaction 2: Bought goods on cash Rs30,000 and on credit for Rs 20,000


    • Assets: Cash + Goods = Rs10,000 + Rs40,000 + Rs30,000 = Rs80,000

    • Liabilities: Creditors = Rs20,000

    • Equity: Capital = Rs60,000

    • The accounting equation is satisfied as Assets = Liabilities + Equity.



  • Transaction 3: Goods costing Rs 48,000 sold at a profit of 20prcnt to Pranav. Half the payment required in cash.


    • Assets: Cash + Accounts Receivable + Goods = Rs40,000 + Rs24,000 + Rs48,000 = Rs112,000

    • Equity: Capital + Profit = Rs60,000 + Rs9,600 (20% of Rs48,000) = Rs69,600

    • The accounting equation is satisfied as Assets = Equity.



  • Transaction 4: Received cash from Pranav (customer) Rs 25,500 and allowed him a discount Rs 500


    • Assets: Cash + Accounts Receivable = Rs40,000 + Rs24,000 - Rs25,000 + Rs500 (discount) = Rs39,500

    • Equity: Capital + Profit = Rs60,000 + Rs9,600 = Rs69,600

    • The accounting equation is satisfied as Assets = Equity.




Thus, the accounting equation is satisfied in all of Sudhir's transactions.
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Prove that the accounting equation is satisfied in all the following transactions of Sudhir : i) Started business with cash Rs10,000 and goods Rs40,000. ii)Bought goods on cash Rs30,000 and on credit for Rs 20,000. iii)Goods costing Rs 48,000 sold at a profit of 20prcnt to Pranav. Half the payment required in cash. iv)Received cash from Pranav (customer) Rs 25,500 and allowed him a discount Rs 500?
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Prove that the accounting equation is satisfied in all the following transactions of Sudhir : i) Started business with cash Rs10,000 and goods Rs40,000. ii)Bought goods on cash Rs30,000 and on credit for Rs 20,000. iii)Goods costing Rs 48,000 sold at a profit of 20prcnt to Pranav. Half the payment required in cash. iv)Received cash from Pranav (customer) Rs 25,500 and allowed him a discount Rs 500? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Prove that the accounting equation is satisfied in all the following transactions of Sudhir : i) Started business with cash Rs10,000 and goods Rs40,000. ii)Bought goods on cash Rs30,000 and on credit for Rs 20,000. iii)Goods costing Rs 48,000 sold at a profit of 20prcnt to Pranav. Half the payment required in cash. iv)Received cash from Pranav (customer) Rs 25,500 and allowed him a discount Rs 500? covers all topics & solutions for Commerce 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 Sudhir : i) Started business with cash Rs10,000 and goods Rs40,000. ii)Bought goods on cash Rs30,000 and on credit for Rs 20,000. iii)Goods costing Rs 48,000 sold at a profit of 20prcnt to Pranav. Half the payment required in cash. iv)Received cash from Pranav (customer) Rs 25,500 and allowed him a discount Rs 500?.
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