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Vivek commenced a business on 1 April, 2012 with cash 6,25,000. He bought a personal computer from his home to the business worth ₹ 16,000; Besides this, the following transactions were entered into by him during the year:
(a) Goods purchased from Vikram 28,000
(b) Opened a new account in SBI with 80,000
(c) Rent paid for 15 months ₹90,000.
(d) Sold goods to Harilal (costing 6,000) for 6,700.
(e) Received cheque from Harilal of 6,500 in full settlement.
Show an accounting equation on the basis of above transactions. Also prepare the Balance
Sheet of Vivek as at 31 March 2013.?
Most Upvoted Answer
Vivek commenced a business on 1 April, 2012 with cash 6,25,000. He bou...
Accounting Equation:

Assets = Liabilities + Owner's Equity

Transactions:
- Cash invested by Vivek: ₹6,25,000
- Personal computer transferred to business: ₹16,000
- Goods purchased from Vikram: ₹28,000
- Opening an account in SBI: ₹80,000
- Rent paid for 15 months: ₹90,000
- Goods sold to Harilal: ₹6,700
- Cheque received from Harilal: ₹6,500

Balance Sheet as at 31 March 2013:

Assets:
- Cash: ₹6,25,000 + ₹6,500 = ₹6,31,500
- Personal computer: ₹16,000
- Goods purchased: ₹28,000
- Bank balance in SBI: ₹80,000
- Total Assets: ₹7,55,500

Liabilities:
- None

Owner's Equity:
- Capital invested by Vivek: ₹6,25,000
- Profit (Goods sold to Harilal): ₹700
- Total Owner's Equity: ₹6,25,000 + ₹700 = ₹6,25,700

Total Liabilities and Owner's Equity: ₹7,55,500
This balance sheet shows that the total assets of the business amount to ₹7,55,500, which is equal to the total of liabilities and owner's equity. The owner's equity includes the capital invested by Vivek and the profit earned during the year. The business does not have any external liabilities as of 31 March 2013.
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Vivek commenced a business on 1 April, 2012 with cash 6,25,000. He bought a personal computer from his home to the business worth ₹ 16,000; Besides this, the following transactions were entered into by him during the year:(a) Goods purchased from Vikram 28,000(b) Opened a new account in SBI with 80,000(c) Rent paid for 15 months ₹90,000.(d) Sold goods to Harilal (costing 6,000) for 6,700.(e) Received cheque from Harilal of 6,500 in full settlement.Show an accounting equation on the basis of above transactions. Also prepare the BalanceSheet of Vivek as at 31 March 2013.?
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Vivek commenced a business on 1 April, 2012 with cash 6,25,000. He bought a personal computer from his home to the business worth ₹ 16,000; Besides this, the following transactions were entered into by him during the year:(a) Goods purchased from Vikram 28,000(b) Opened a new account in SBI with 80,000(c) Rent paid for 15 months ₹90,000.(d) Sold goods to Harilal (costing 6,000) for 6,700.(e) Received cheque from Harilal of 6,500 in full settlement.Show an accounting equation on the basis of above transactions. Also prepare the BalanceSheet of Vivek as at 31 March 2013.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Vivek commenced a business on 1 April, 2012 with cash 6,25,000. He bought a personal computer from his home to the business worth ₹ 16,000; Besides this, the following transactions were entered into by him during the year:(a) Goods purchased from Vikram 28,000(b) Opened a new account in SBI with 80,000(c) Rent paid for 15 months ₹90,000.(d) Sold goods to Harilal (costing 6,000) for 6,700.(e) Received cheque from Harilal of 6,500 in full settlement.Show an accounting equation on the basis of above transactions. Also prepare the BalanceSheet of Vivek as at 31 March 2013.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Vivek commenced a business on 1 April, 2012 with cash 6,25,000. He bought a personal computer from his home to the business worth ₹ 16,000; Besides this, the following transactions were entered into by him during the year:(a) Goods purchased from Vikram 28,000(b) Opened a new account in SBI with 80,000(c) Rent paid for 15 months ₹90,000.(d) Sold goods to Harilal (costing 6,000) for 6,700.(e) Received cheque from Harilal of 6,500 in full settlement.Show an accounting equation on the basis of above transactions. Also prepare the BalanceSheet of Vivek as at 31 March 2013.?.
Solutions for Vivek commenced a business on 1 April, 2012 with cash 6,25,000. He bought a personal computer from his home to the business worth ₹ 16,000; Besides this, the following transactions were entered into by him during the year:(a) Goods purchased from Vikram 28,000(b) Opened a new account in SBI with 80,000(c) Rent paid for 15 months ₹90,000.(d) Sold goods to Harilal (costing 6,000) for 6,700.(e) Received cheque from Harilal of 6,500 in full settlement.Show an accounting equation on the basis of above transactions. Also prepare the BalanceSheet of Vivek as at 31 March 2013.? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
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