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Prepare accounting equation of Madanlal from the given transactions:
(1) Started business with cash Rs. 1,20,000
(ii) Advance Rent paid Rs. 1,000
(ui) Bought goods in cash Rs. 60,000 (iv) Bought goods in credit Rs. 40,000
(v) Cash sale Rs. 60,000 (cost price Rs. 40,000)
(vi) Paid salaries Rs. 1,000
(vii) Bought Scooter for personal use Rs. 10,000.
(viii) Outstanding salary paid Rs. 200
[Ans. Cash + Stock + Prepaid rent 1,08,000+60,000 + 1,000 Creditor's + Capital 40,000 +1,29,000].?
(1) Started business with cash Rs. 1,20,000
(ii) Advance Rent paid Rs. 1,000
(ui) Bought goods in cash Rs. 60,000 (iv) Bought goods in credit Rs. 40,000
(v) Cash sale Rs. 60,000 (cost price Rs. 40,000)
(vi) Paid salaries Rs. 1,000
(vii) Bought Scooter for personal use Rs. 10,000.
(viii) Outstanding salary paid Rs. 200
[Ans. Cash + Stock + Prepaid rent 1,08,000+60,000 + 1,000 Creditor's + Capital 40,000 +1,29,000].?
Most Upvoted Answer
Prepare accounting equation of Madanlal from the given transactions:(1...
Analysis of Transactions for Madanlal:
1. Started business with cash Rs. 1,20,000
- Increase in Cash: + Rs. 1,20,000
- Increase in Capital: + Rs. 1,20,000
2. Advance Rent paid Rs. 1,000
- Decrease in Cash: - Rs. 1,000
- Increase in Prepaid Rent: + Rs. 1,000
3. Bought goods in cash Rs. 60,000
- Decrease in Cash: - Rs. 60,000
- Increase in Stock: + Rs. 60,000
4. Bought goods in credit Rs. 40,000
- Increase in Stock: + Rs. 40,000
- Increase in Creditor's: + Rs. 40,000
5. Cash sale Rs. 60,000 (cost price Rs. 40,000)
- Increase in Cash: + Rs. 60,000
- Increase in Sales: + Rs. 60,000
- Increase in Cost of Goods Sold: + Rs. 40,000
6. Paid salaries Rs. 1,000
- Decrease in Cash: - Rs. 1,000
- Decrease in Capital: - Rs. 1,000
7. Bought Scooter for personal use Rs. 10,000
- No impact on business transactions as it is for personal use.
8. Outstanding salary paid Rs. 200
- Decrease in Cash: - Rs. 200
- Decrease in Outstanding Salary: - Rs. 200
Accounting Equation for Madanlal:
- Cash + Stock + Prepaid Rent = Capital
- (1,20,000 - 1,000 - 60,000 - 200) + 60,000 + 1,000 = 1,20,000
- 1,08,000 + 60,000 + 1,000 = 1,29,000
The accounting equation for Madanlal's business shows that the total assets are equal to the total liabilities and owner's equity, indicating that the business is in balance.
1. Started business with cash Rs. 1,20,000
- Increase in Cash: + Rs. 1,20,000
- Increase in Capital: + Rs. 1,20,000
2. Advance Rent paid Rs. 1,000
- Decrease in Cash: - Rs. 1,000
- Increase in Prepaid Rent: + Rs. 1,000
3. Bought goods in cash Rs. 60,000
- Decrease in Cash: - Rs. 60,000
- Increase in Stock: + Rs. 60,000
4. Bought goods in credit Rs. 40,000
- Increase in Stock: + Rs. 40,000
- Increase in Creditor's: + Rs. 40,000
5. Cash sale Rs. 60,000 (cost price Rs. 40,000)
- Increase in Cash: + Rs. 60,000
- Increase in Sales: + Rs. 60,000
- Increase in Cost of Goods Sold: + Rs. 40,000
6. Paid salaries Rs. 1,000
- Decrease in Cash: - Rs. 1,000
- Decrease in Capital: - Rs. 1,000
7. Bought Scooter for personal use Rs. 10,000
- No impact on business transactions as it is for personal use.
8. Outstanding salary paid Rs. 200
- Decrease in Cash: - Rs. 200
- Decrease in Outstanding Salary: - Rs. 200
Accounting Equation for Madanlal:
- Cash + Stock + Prepaid Rent = Capital
- (1,20,000 - 1,000 - 60,000 - 200) + 60,000 + 1,000 = 1,20,000
- 1,08,000 + 60,000 + 1,000 = 1,29,000
The accounting equation for Madanlal's business shows that the total assets are equal to the total liabilities and owner's equity, indicating that the business is in balance.
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Prepare accounting equation of Madanlal from the given transactions:(1) Started business with cash Rs. 1,20,000(ii) Advance Rent paid Rs. 1,000(ui) Bought goods in cash Rs. 60,000 (iv) Bought goods in credit Rs. 40,000(v) Cash sale Rs. 60,000 (cost price Rs. 40,000)(vi) Paid salaries Rs. 1,000(vii) Bought Scooter for personal use Rs. 10,000.(viii) Outstanding salary paid Rs. 200[Ans. Cash + Stock + Prepaid rent 1,08,000+60,000 + 1,000 Creditor's + Capital 40,000 +1,29,000].?
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Prepare accounting equation of Madanlal from the given transactions:(1) Started business with cash Rs. 1,20,000(ii) Advance Rent paid Rs. 1,000(ui) Bought goods in cash Rs. 60,000 (iv) Bought goods in credit Rs. 40,000(v) Cash sale Rs. 60,000 (cost price Rs. 40,000)(vi) Paid salaries Rs. 1,000(vii) Bought Scooter for personal use Rs. 10,000.(viii) Outstanding salary paid Rs. 200[Ans. Cash + Stock + Prepaid rent 1,08,000+60,000 + 1,000 Creditor's + Capital 40,000 +1,29,000].? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Prepare accounting equation of Madanlal from the given transactions:(1) Started business with cash Rs. 1,20,000(ii) Advance Rent paid Rs. 1,000(ui) Bought goods in cash Rs. 60,000 (iv) Bought goods in credit Rs. 40,000(v) Cash sale Rs. 60,000 (cost price Rs. 40,000)(vi) Paid salaries Rs. 1,000(vii) Bought Scooter for personal use Rs. 10,000.(viii) Outstanding salary paid Rs. 200[Ans. Cash + Stock + Prepaid rent 1,08,000+60,000 + 1,000 Creditor's + Capital 40,000 +1,29,000].? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Prepare accounting equation of Madanlal from the given transactions:(1) Started business with cash Rs. 1,20,000(ii) Advance Rent paid Rs. 1,000(ui) Bought goods in cash Rs. 60,000 (iv) Bought goods in credit Rs. 40,000(v) Cash sale Rs. 60,000 (cost price Rs. 40,000)(vi) Paid salaries Rs. 1,000(vii) Bought Scooter for personal use Rs. 10,000.(viii) Outstanding salary paid Rs. 200[Ans. Cash + Stock + Prepaid rent 1,08,000+60,000 + 1,000 Creditor's + Capital 40,000 +1,29,000].?.
Prepare accounting equation of Madanlal from the given transactions:(1) Started business with cash Rs. 1,20,000(ii) Advance Rent paid Rs. 1,000(ui) Bought goods in cash Rs. 60,000 (iv) Bought goods in credit Rs. 40,000(v) Cash sale Rs. 60,000 (cost price Rs. 40,000)(vi) Paid salaries Rs. 1,000(vii) Bought Scooter for personal use Rs. 10,000.(viii) Outstanding salary paid Rs. 200[Ans. Cash + Stock + Prepaid rent 1,08,000+60,000 + 1,000 Creditor's + Capital 40,000 +1,29,000].? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Prepare accounting equation of Madanlal from the given transactions:(1) Started business with cash Rs. 1,20,000(ii) Advance Rent paid Rs. 1,000(ui) Bought goods in cash Rs. 60,000 (iv) Bought goods in credit Rs. 40,000(v) Cash sale Rs. 60,000 (cost price Rs. 40,000)(vi) Paid salaries Rs. 1,000(vii) Bought Scooter for personal use Rs. 10,000.(viii) Outstanding salary paid Rs. 200[Ans. Cash + Stock + Prepaid rent 1,08,000+60,000 + 1,000 Creditor's + Capital 40,000 +1,29,000].? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Prepare accounting equation of Madanlal from the given transactions:(1) Started business with cash Rs. 1,20,000(ii) Advance Rent paid Rs. 1,000(ui) Bought goods in cash Rs. 60,000 (iv) Bought goods in credit Rs. 40,000(v) Cash sale Rs. 60,000 (cost price Rs. 40,000)(vi) Paid salaries Rs. 1,000(vii) Bought Scooter for personal use Rs. 10,000.(viii) Outstanding salary paid Rs. 200[Ans. Cash + Stock + Prepaid rent 1,08,000+60,000 + 1,000 Creditor's + Capital 40,000 +1,29,000].?.
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Prepare accounting equation of Madanlal from the given transactions:(1) Started business with cash Rs. 1,20,000(ii) Advance Rent paid Rs. 1,000(ui) Bought goods in cash Rs. 60,000 (iv) Bought goods in credit Rs. 40,000(v) Cash sale Rs. 60,000 (cost price Rs. 40,000)(vi) Paid salaries Rs. 1,000(vii) Bought Scooter for personal use Rs. 10,000.(viii) Outstanding salary paid Rs. 200[Ans. Cash + Stock + Prepaid rent 1,08,000+60,000 + 1,000 Creditor's + Capital 40,000 +1,29,000].?, a detailed solution for Prepare accounting equation of Madanlal from the given transactions:(1) Started business with cash Rs. 1,20,000(ii) Advance Rent paid Rs. 1,000(ui) Bought goods in cash Rs. 60,000 (iv) Bought goods in credit Rs. 40,000(v) Cash sale Rs. 60,000 (cost price Rs. 40,000)(vi) Paid salaries Rs. 1,000(vii) Bought Scooter for personal use Rs. 10,000.(viii) Outstanding salary paid Rs. 200[Ans. Cash + Stock + Prepaid rent 1,08,000+60,000 + 1,000 Creditor's + Capital 40,000 +1,29,000].? has been provided alongside types of Prepare accounting equation of Madanlal from the given transactions:(1) Started business with cash Rs. 1,20,000(ii) Advance Rent paid Rs. 1,000(ui) Bought goods in cash Rs. 60,000 (iv) Bought goods in credit Rs. 40,000(v) Cash sale Rs. 60,000 (cost price Rs. 40,000)(vi) Paid salaries Rs. 1,000(vii) Bought Scooter for personal use Rs. 10,000.(viii) Outstanding salary paid Rs. 200[Ans. Cash + Stock + Prepaid rent 1,08,000+60,000 + 1,000 Creditor's + Capital 40,000 +1,29,000].? theory, EduRev gives you an
ample number of questions to practice Prepare accounting equation of Madanlal from the given transactions:(1) Started business with cash Rs. 1,20,000(ii) Advance Rent paid Rs. 1,000(ui) Bought goods in cash Rs. 60,000 (iv) Bought goods in credit Rs. 40,000(v) Cash sale Rs. 60,000 (cost price Rs. 40,000)(vi) Paid salaries Rs. 1,000(vii) Bought Scooter for personal use Rs. 10,000.(viii) Outstanding salary paid Rs. 200[Ans. Cash + Stock + Prepaid rent 1,08,000+60,000 + 1,000 Creditor's + Capital 40,000 +1,29,000].? tests, examples and also practice Commerce tests.
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