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Calculate the accounting equation: 1. Raj commense business with cash 70,000 2. Purchased goods on credit 12,000 3. Withdraw for private use 1,700 4. Goods purchased for cash 10,000 5. Paid wages 300 6. Paid to creditors 10,000 7. Sold goods on credit for 15,000 8. Sold goods for (cash price 3,000) 4,000 9. Purchased furniture for cash 500?
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Calculate the accounting equation: 1. Raj commense business with cash ...
The Accounting Equation:
The accounting equation states that the assets of a business are equal to the liabilities plus the owner's equity. It can be represented as:
Assets = Liabilities + Owner's Equity
1. Raj commences business with cash 70,000:
- Raj invests cash of 70,000 into the business.
- This increases the assets of the business by 70,000.
2. Purchased goods on credit 12,000:
- Goods are purchased on credit, which means they are acquired without immediate payment.
- This increases the liabilities of the business by 12,000.
3. Withdraw for private use 1,700:
- Raj withdraws cash from the business for personal use.
- This decreases the assets of the business by 1,700.
4. Goods purchased for cash 10,000:
- Goods are purchased for cash, which means immediate payment is made.
- This decreases the assets of the business by 10,000.
5. Paid wages 300:
- Cash is paid to employees as wages.
- This decreases the assets of the business by 300.
6. Paid to creditors 10,000:
- Cash is paid to creditors to settle the amount owed for the goods purchased on credit.
- This decreases the assets of the business by 10,000 and decreases the liabilities by 12,000.
7. Sold goods on credit for 15,000:
- Goods are sold to customers on credit, which means payment will be received in the future.
- This increases the assets of the business by 15,000.
8. Sold goods for (cash price 3,000) 4,000:
- Goods are sold for cash at a price of 4,000, which is higher than the credit price of 3,000.
- This increases the assets of the business by 4,000.
9. Purchased furniture for cash 500:
- Furniture is purchased for cash.
- This decreases the assets of the business by 500.
Summary:
- Assets:
- Cash: 70,000 - 1,700 - 10,000 - 300 + 15,000 + 4,000 - 500 = 76,500
- Other assets (excluding cash): 0 (no information provided)
- Liabilities: 12,000 - 10,000 = 2,000 (remaining amount owed to creditors)
- Owner's Equity:
- Equity at the beginning: 0 (no information provided)
- Equity at the end: 76,500 - 2,000 = 74,500
Therefore, the accounting equation is as follows:
Assets (76,500) = Liabilities (2,000) + Owner's Equity (74,500)
The accounting equation states that the assets of a business are equal to the liabilities plus the owner's equity. It can be represented as:
Assets = Liabilities + Owner's Equity
1. Raj commences business with cash 70,000:
- Raj invests cash of 70,000 into the business.
- This increases the assets of the business by 70,000.
2. Purchased goods on credit 12,000:
- Goods are purchased on credit, which means they are acquired without immediate payment.
- This increases the liabilities of the business by 12,000.
3. Withdraw for private use 1,700:
- Raj withdraws cash from the business for personal use.
- This decreases the assets of the business by 1,700.
4. Goods purchased for cash 10,000:
- Goods are purchased for cash, which means immediate payment is made.
- This decreases the assets of the business by 10,000.
5. Paid wages 300:
- Cash is paid to employees as wages.
- This decreases the assets of the business by 300.
6. Paid to creditors 10,000:
- Cash is paid to creditors to settle the amount owed for the goods purchased on credit.
- This decreases the assets of the business by 10,000 and decreases the liabilities by 12,000.
7. Sold goods on credit for 15,000:
- Goods are sold to customers on credit, which means payment will be received in the future.
- This increases the assets of the business by 15,000.
8. Sold goods for (cash price 3,000) 4,000:
- Goods are sold for cash at a price of 4,000, which is higher than the credit price of 3,000.
- This increases the assets of the business by 4,000.
9. Purchased furniture for cash 500:
- Furniture is purchased for cash.
- This decreases the assets of the business by 500.
Summary:
- Assets:
- Cash: 70,000 - 1,700 - 10,000 - 300 + 15,000 + 4,000 - 500 = 76,500
- Other assets (excluding cash): 0 (no information provided)
- Liabilities: 12,000 - 10,000 = 2,000 (remaining amount owed to creditors)
- Owner's Equity:
- Equity at the beginning: 0 (no information provided)
- Equity at the end: 76,500 - 2,000 = 74,500
Therefore, the accounting equation is as follows:
Assets (76,500) = Liabilities (2,000) + Owner's Equity (74,500)
Community Answer
Calculate the accounting equation: 1. Raj commense business with cash ...
Cash A/c Dr 70000 To Raj capital A/c 70000 Purchase A/c Dr 12000 To creditor A/c 12000 Drawings A/c Dr 1700 To cash A/c 1700 Purchase A/c Dr 10000 To cash A/c 10000 Wages A/c Dr 300 To cash A/c 300 Creditors A/c Dr 10000 To cash A/c 10000 Creditors A/c Dr 15000 To sale A/x 15000 Cash A/c Dr 3000 Discount allow A/c Dr 1000 To sale A/c 4000 Furniture A/c Dr 500 To cash A/c 500
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Calculate the accounting equation: 1. Raj commense business with cash 70,000 2. Purchased goods on credit 12,000 3. Withdraw for private use 1,700 4. Goods purchased for cash 10,000 5. Paid wages 300 6. Paid to creditors 10,000 7. Sold goods on credit for 15,000 8. Sold goods for (cash price 3,000) 4,000 9. Purchased furniture for cash 500?
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Calculate the accounting equation: 1. Raj commense business with cash 70,000 2. Purchased goods on credit 12,000 3. Withdraw for private use 1,700 4. Goods purchased for cash 10,000 5. Paid wages 300 6. Paid to creditors 10,000 7. Sold goods on credit for 15,000 8. Sold goods for (cash price 3,000) 4,000 9. Purchased furniture for cash 500? 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 Calculate the accounting equation: 1. Raj commense business with cash 70,000 2. Purchased goods on credit 12,000 3. Withdraw for private use 1,700 4. Goods purchased for cash 10,000 5. Paid wages 300 6. Paid to creditors 10,000 7. Sold goods on credit for 15,000 8. Sold goods for (cash price 3,000) 4,000 9. Purchased furniture for cash 500? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate the accounting equation: 1. Raj commense business with cash 70,000 2. Purchased goods on credit 12,000 3. Withdraw for private use 1,700 4. Goods purchased for cash 10,000 5. Paid wages 300 6. Paid to creditors 10,000 7. Sold goods on credit for 15,000 8. Sold goods for (cash price 3,000) 4,000 9. Purchased furniture for cash 500?.
Calculate the accounting equation: 1. Raj commense business with cash 70,000 2. Purchased goods on credit 12,000 3. Withdraw for private use 1,700 4. Goods purchased for cash 10,000 5. Paid wages 300 6. Paid to creditors 10,000 7. Sold goods on credit for 15,000 8. Sold goods for (cash price 3,000) 4,000 9. Purchased furniture for cash 500? 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 Calculate the accounting equation: 1. Raj commense business with cash 70,000 2. Purchased goods on credit 12,000 3. Withdraw for private use 1,700 4. Goods purchased for cash 10,000 5. Paid wages 300 6. Paid to creditors 10,000 7. Sold goods on credit for 15,000 8. Sold goods for (cash price 3,000) 4,000 9. Purchased furniture for cash 500? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate the accounting equation: 1. Raj commense business with cash 70,000 2. Purchased goods on credit 12,000 3. Withdraw for private use 1,700 4. Goods purchased for cash 10,000 5. Paid wages 300 6. Paid to creditors 10,000 7. Sold goods on credit for 15,000 8. Sold goods for (cash price 3,000) 4,000 9. Purchased furniture for cash 500?.
Solutions for Calculate the accounting equation: 1. Raj commense business with cash 70,000 2. Purchased goods on credit 12,000 3. Withdraw for private use 1,700 4. Goods purchased for cash 10,000 5. Paid wages 300 6. Paid to creditors 10,000 7. Sold goods on credit for 15,000 8. Sold goods for (cash price 3,000) 4,000 9. Purchased furniture for cash 500? in English & in Hindi are available as part of our courses for Class 11.
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Calculate the accounting equation: 1. Raj commense business with cash 70,000 2. Purchased goods on credit 12,000 3. Withdraw for private use 1,700 4. Goods purchased for cash 10,000 5. Paid wages 300 6. Paid to creditors 10,000 7. Sold goods on credit for 15,000 8. Sold goods for (cash price 3,000) 4,000 9. Purchased furniture for cash 500?, a detailed solution for Calculate the accounting equation: 1. Raj commense business with cash 70,000 2. Purchased goods on credit 12,000 3. Withdraw for private use 1,700 4. Goods purchased for cash 10,000 5. Paid wages 300 6. Paid to creditors 10,000 7. Sold goods on credit for 15,000 8. Sold goods for (cash price 3,000) 4,000 9. Purchased furniture for cash 500? has been provided alongside types of Calculate the accounting equation: 1. Raj commense business with cash 70,000 2. Purchased goods on credit 12,000 3. Withdraw for private use 1,700 4. Goods purchased for cash 10,000 5. Paid wages 300 6. Paid to creditors 10,000 7. Sold goods on credit for 15,000 8. Sold goods for (cash price 3,000) 4,000 9. Purchased furniture for cash 500? theory, EduRev gives you an
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