Cash increase by 50000stock decrease by 75000 debtor increase by 50000 on other side capital increase by 25000

Accounting Equation

The accounting equation is Assets = Liabilities + Owner's Equity. This equation represents the fundamental principle of accounting, which states that a company's total assets must equal its total liabilities and owner's equity.

Calculation of Profit

To calculate the profit in this scenario, we need to first determine the selling price of the goods. Since the goods were sold at a profit of 33 1/3%, the selling price can be calculated as follows:

Selling price = Cost price + Profit
Selling price = 75000 + (33 1/3% of 75000)
Selling price = 75000 + 25000
Selling price = 100000

Therefore, the goods were sold for Rs. 100,000.

Amount Received in Cash

It is given that half the amount was received in cash. Therefore, the amount received in cash would be:

Amount received in cash = 1/2 x Selling price
Amount received in cash = 1/2 x 100000
Amount received in cash = Rs. 50,000

Accounting Entries

The accounting entries to record the sale of goods and receipt of cash would be as follows:

On sale of goods:
Debit - Cash/Bank Account - Rs. 50,000
Debit - Profit and Loss Account - Rs. 25,000
Credit - Sales Account - Rs. 75,000

On receipt of cash:
Debit - Cash/Bank Account - Rs. 50,000
Credit - Sales Account - Rs. 50,000

Impact on Accounting Equation

The impact on the accounting equation can be seen as follows:

Before Sale:
Assets = Rs. 75,000 (Goods)
Liabilities = 0
Owner's Equity = Rs. 75,000 (Capital)

After Sale:
Assets = Rs. 125,000 (Cash + Goods)
Liabilities = 0
Owner's Equity = Rs. 100,000 (Capital + Profit)

Therefore, the accounting equation is balanced both before and after the sale of goods and receipt of cash.