Prepaid expenses . (f) Cash paid to Krishan ₹ 28,000. A received cash on account journal entry is needed when a business has received cash from a customer and the amount is not allocated to a particular customer invoice or the customer has not yet been invoiced. Raghubir is a creditor, which means, it is a liability for the business. Salary Paid 4. During the year, he had introduced additional capital of ₹ 60,000 and had withdrawn ₹ 36,000 for personal purposes. 60,000 + Rs. Show the accounting equation on the basis of following transactions: (iii) Depreciation on machinery provided @ 10%. ... Transaction 8: Received cash from a debtor Rs 1,000 whom a sale on credit was made earlier. 5. 6. Bought goods for cash ₹80,000 and on credit for ₹40,000. Dec 22,2020 - Prepare Accounting Equation. (vii) Received cash from Rajesh Rs.500 (viii)Withdrew cash for private use Rs.2, 200 (ix) Received rent from tenants Rs.2,500 (x) Purchased goods from Murali for cash Rs.1, 500. 4. Total Cost of Goods Sold = 40,000 + 72,000 = Rs 1,12,000. This means that each debit has an equal credit and vice-versa. The equation is: Find out his closing capital and profits earned during the year. 4. Solution: Question 18. 3. Returned goods to Raghubir for ₹ 5,000. FREE Downloadable NCERT Solutions.Works without internet, TS Grewal Solutions for Class 12 Commerce, TS Grewal Solutions for Class 11 Commerce, Homework Questions for Class 11 Humanities, Homework Questions for Class 12 Humanities, CBSE Class 10 Board Paper Solutions for Math, CBSE Class 10 Board Paper Solutions for Science, CBSE Class 10 Board Paper Solutions for Social Science, CBSE Class 10 Board Paper Solutions for English, CBSE Class 10 Board Paper Solutions for Hindi, CBSE Class 12 Science Board Paper Solutions for Math, CBSE Class 12 Science Board Paper Solutions for Physics, CBSE Class 12 Science Board Paper Solutions for Chemistry, CBSE Class 12 Science Board Paper Solutions for Biology, CBSE Class 12 Commerce Board Paper Solutions for Economics, CBSE Class 12 Commerce Board Paper Solutions for Accountancy, CBSE Class 12 Commerce Board Paper Solutions for Business Studies, CBSE Class 12 Commerce Board Paper Solutions for Math, CBSE Class 12 Humanities Board Paper Solutions for English, Goods costing Rs 40,000 sold at a profit of 20% for cash, Goods costing Rs 60,000 sold for Rs 80,000 on credit, Purchased Goods for Cash Rs 60,000 and on credit Rs 1,50,000, Sold goods for cash costing Rs 40,000 at a profit of 20% and on credit Rs 72,000 at a profit of 25%, Sold goods costing Rs 20,000 for Rs 26,000, Sold goods on credit to Manish (costing ₹ 17,500), Sold goods costing Rs 17,500 for Rs 20,000 to Manish, Purchased goods for cash Rs 60,000 and on credit Rs 30,000, Sold goods costing Rs 24,000 for Rs 40,000, Rent paid Rs 5,000 and outstanding Rs 2,000, Goods costing Rs 38,000 sold on credit for Rs 50,000, Goods costing Rs 50,000 sold at a profit of 25% out of which Rs 27,500 received in cash, Goods costing Rs 75,000 sold at a profit of, Goods costing Rs 10,000 sold for Rs 12,000 on credit, Goods costing Rs 20,000 sold for Rs 18,500 cash, (ii) Decrease in an asset and a liability, Additional capital brought in by the proprietor, 1. (x) Paid to Gopal ₹ 30,000. (e) Rent outstanding ₹ 2,000. 3. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000. these three items in equation form, we get: Assets – Liabilities = Owner’s equity. 20,000 . 3. Debtors or accounts receivable . Opening Capital (Capital as on 1st April, 2013) = Rs 1,00,000. (d) Paid for Rent ₹ 5,000. (a) Started business with cash ₹ 50,000 and goods ₹ 30,000. (d) Purchased goods from Krishan for cash ₹ 10,000. Rent Received 3. 60,000 . Prepare Accounting Equation from the following:-, Goods costing ₹ 40,000 sold at a profit of 20% for cash, Working Note: Goods costing ₹ 60,000 sold for ₹ 80,000 on credit. Ltd. (c) Deposited into bank account ₹ 1,80,000. All questions and answers from the Accountancy Dk Goel 2018 Book of Class 11 Commerce Accountancy Chapter 1 are provided here for you for free. 5. Answer: hi buddy. Three-fourth payment received in Cash This simple equation illustrates two facts about a company: what it owns and what it owes. (b) Sold goods to Hari on credit ₹ 20,000. Working Note: Purchased goods for ₹ 50,000 for cash. 7. (ii) Purchased goods for Cash ₹ 40,000 and on Credit ₹ 25,000. The accounting equation summarizes the essential nature of double-entry system of accounting. | EduRev Commerce Question is disucussed on EduRev Study Group by 142 Commerce Students. ASC's … As we know, increase in liability is recorded on the credit side while decrease in liability will be shown on the debit side of the concerned liability account. (e) Cash received from Hari ₹ 15,000. WN1 Calculation of Sale Price. Stock (stock of raw materials, work-in-progress, finished goods etc.) If the Capital of a business is ₹ 1,20,000 and Outside liabilities are ₹ 20,000, calculate total assets of the business. Prepare Accounting Equation from the following: Paid to Raghubir ₹ 30,000. Accounting equation can be simply defined as a relationship between assets, liabilities and owner’s equity in the business. b. Not only does the balance sheet reflect the basic accounting equation as implemented, but also the income statement.. An income statement is prepared to reflect the company’s total expenses and total income to calculate the net … Part of these assets is provided by the owner, total amount of funds contributed by him is called owner’s equity or capital. ... furniture and fixtures, plant and machinery, vehicles, debtors, bills receivable, bank balance, cash, stock, etc. 60,000 . Credit notes or goods returned, received from debtors (customers) has exactly the … 2. This is true at any time and applies to each transaction. You will also love the ad-free experience on Meritnation’s Accountancy Dk Goel 2018 Solutions. Goods costing ₹75,000 sold at a profit of 3313%. On 31st March, 2012 his assets were worth ₹ 5,00,000 and liabilities ₹ 1,00,000. 500; Received cash by debtors Rs. 10000 ? Raghu started business with Cash ₹1,50,000. Prepare Accounting Equation from the following: He sold goods (Costing ₹ 20,000) for cash. (i) Started business with Cash ₹ 60,000 and Goods ₹ 30,000. 5. (I) Increase in Cash (being an asset) will be shown on the debit side and decrease in cash will be recorded on the credit side of the Cash Account. Reply. Liabilities and owner's equity are unaffected. 2. The 'basic accounting equation' is the foundation for the double-entry bookkeeping system. Cash has been received by the business and needs to be debited to the asset account of cash. Open 'T' shape account of our creditor 'Raghubir' and write the following transactions on the proper side:− Also prepare a Balance Sheet:− (adsbygoogle = window.adsbygoogle || []).push({}); The received cash on account journal entry will be as follows. Received ₹ 800 for Commission. 4. (v) Paid Rent ₹ 4,000 and Salary ₹ 6,000. If in the above case, the proprietor had introduced fresh capital of ₹ 40,000 and had withdrawn ₹ 10,000 for personal purposes, calculate his profits. (ii) Decrease in an asset and a liability. 4. ... Q1 Asset cash furniture goods debtor bank machinery Liability creditor bank loan Capital capital Asset cash furniture motor ... Sold goods for cash 20000 0 New equation Sold goods on credit to Mr. Jay 20000 0 New equation Paid cash to Mr. Mayank 20000 0 New equation Cash received from Mr. Jay 20000 0 … Solution 3: Total Assets = Cash + Debtors + Machinery + Stock = Rs. No debtor (a credit item) would ever be recorded anywhere. 3.Sold goods on Credit to J.Mali for R5880 ( cost price R3920)? Double Entry Bookkeeping is here to provide you with free online information to help you learn and understand bookkeeping and introductory accounting. Yogesh commenced business on 1st April, 2011 with a Capital of ₹ 5,00,000 and a loan of ₹ 1,00,000 borrowed from Citi Bank. 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