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ILLUSTRATION 3., Prepare ‘Accounting Equation’ from the following :, (a) Started business with cash %1,00,000., (b) Purchased goods for cash 20,000 and on credit 30,000., (¢) Sold goods for cash costing 10,000 and on credit costing =15,000 both at, a profit of 20%. (Dethi 2010; 2012), , Scanned with CamScanner

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~ ACCOUNTING EQUATION, , SWOLLPAOG ONIENTOIOF, , Working Notes :, , (4) Goods costing €10,000 sold at a profit of 20%, , Profit = 10,000 x a = 2,000; Sale Price 10,000 + 2,000 = 12,000, , (ii) Goods costing %15,000 sold at a profit of 20%, , Profit = 15,000 x = = 3,000; Sale Price 15,000 + 3,000 = 18,000, , (iii) Profit on sale 2,000 + %3,000 = %5,000 is added to Capital., , , , Scanned with CamScanner

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ee ; ACCOUNTING EQUATIONS, , ILLUSTRATION 4., Show the effect of the following transactions on Assets, Liabilities and Capital, through accounting equation :, , zg, (a) Started business with cash 1,20,000, (b) Rent received . 10,000, (c) Invested in shares 50,000, (d) Received dividend : ‘ 5,000, (e) Purchased goods on credit from Ragani ; 35,000, (f) Paid cash for household expenses 7,000, (g) Sold goods for cash (costing 10,000) : 14,000, (A) Cash paid to Ragani 35,000, (i) Deposited into bank : 20,000, , (Solution on Next Page), , Scanned with CamScanner

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SOLUTION : (4), , ACCOUNTING EQUATION, , , , Equation, Rent received 710,000., , , , New Equation, Invested in shares 750,000, , New| Equation +, Received Dividend 5, 000, , , , , , New Equation., Purchased goods | on credit., 35,000 Z, , , , New Equation, Paid cash for household expel, 27,000 , , , New, ‘Equation!, Sold goods for cash: (Cost, 10,000) for 14,000, , New Equation, , , , Cash, paid to Ragani %35,000_, , Scanned with CamScanner, , , , SNOILFROT DNIELNNOIOK.

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ILLUSTRATION 5., , Transactions of M/s Vipin Traders are given below :, , Show the effects on Assets, Liabilities and Capital with the help of accounting, equation., ., , (a) Business started with cash 1,25,000, (6) Purchased goods for cash , 50,000, (c) Purchased furniture from R.K. Furniture 10,000, (d) Sold goods to Parul Traders (Costing %7,000 vide bill no. 5,674) 9,000, (e) Paid cartage 100, (f) Cash Paid to R.K. Furniture in full settlement 9,700, (g) Cash sales (costing ¥10,000) 12,000, (A) Rent received 4,000, , 3,000, , (2) Cash withdrew for personal use, (Solution on Page 6.10), , Scanned with CamScanner