Solution of Accounting Equation Problem

1 Harish started business with cash rs.15000
2 he purchased goods on credit rs. 7000

3 he purchased furniture for cash rs. 500

4 he deposited into bank rs. 2000

5 he sold goods on credit to satish costing rs. 4000 for rs. 6000

6 he withdrew cash for private use rs. 200

7he paid salaries rs. 300



[  Ans   Assets rs. 23500 ; Liabilities rs. 7000 ; Capital rs. 16500]


Assi Prince from India






















Assi Prince! This problem is relating to accounting equation.


Accounting equation means assets always equal to liabilities.


-----------------------------------------------------------------------

Total Assets = Total Capital + Total Outside Liabilities



Capital  +  Outside
Liabilities =
Assets


1.  Harish started business with cash rs.15000


Capital 15000  Cash 15000

2. he purchased goods on credit rs. 7000
Capital 15000 Cash 15000

Creditor
7000
Stock
7000


3 . He purchased furniture for cash rs. 500


Capital 15000 cash - cash payment for F. 15000 -
500 = 14500

Creditor
7000
furniture
500
stock 7000


4 . He deposited into bank rs. 2000


Capital 15000 cash - deposit in bank 14500 - 2000= 12500

Creditor
7000 furniture 500
stock 7000
Bank 2000


5 . He sold goods on credit to satish costing rs. 4000 for rs. 6000 


Capital
+ profit from sales
15000
+ 2000
= 17000
cash  12500

Creditor
7000 furniture 500
stock
- sale of stock (cost)
7000
- 4000
= 3000
Bank 2000

Debtors for sold stock
6000


6.  He withdrew cash for private use rs. 200


Capital
+ profit from sales -
drawing
17000
- 200
= 16800
cash - cash payment for
drawing
12500 -200 = 12300

Creditor
7000 furniture 500
stock
- sale of stock (cost)
7000
- 4000
= 3000
Bank 2000

Debtors for sold stock
6000


7 . He paid salaries rs. 300


Capital
+ profit from sales -
drawing
-
expenses of salary
16800
- 300
= 16500
cash -
payment of salary exp.
12300-
300 = 12000

Creditor
7000 furniture 500
stock
- sale of stock (cost)
7000
- 4000
= 3000
Bank 2000

Debtors for sold stock
6000
Capital + Liabilities
16500 + 7000 = Total of Assets 23500



.

$type=three$a=hide$cm=hide$s=hide$show=/2019/08/how-to-spend-money-intelligently.html$l=hide$c=9$d=

$type=three$a=hide$cm=hide$s=hide$show=/2019/08/how-to-buy-gold-from-paytm.html$l=hide$c=6$d=no

$type=three$a=hide$cm=hide$s=hide$show=/2013/06/tdr-vs-stdr.html$l=hide$c=30$d=no

$type=three$a=hide$cm=hide$s=hide$show=/2019/06/10-steps-to-become-better-investor.html$l=hide

Name

11th Class Physics 6th Class Science accounting Accounting Concepts Accounting Course Accounting Education accounting equation Accounting Solutions Accounting Videos in Hindi Algebra Answer the Questions and Become Master Applied sciences B.Com Maths Balance Sheet bank Banking Bodybuilding Education Budget Business Business Education Business Environment Business Mathematics Business Solutions CA Calculus cameras car Car Driving Course Career Solutions carpentry Cattle Domestication Skill Cattle Domestication Skill chemistry Class 10 Maths Class 8 Maths Class 9 Maths Computer Computer Basics Computer Hardware Computer Networking Computer Software Computer Solutions Construction Skills cooking education Corporate Accounting Corporate Law cost cost accounting Credit Card CSE Dailymotion DEMAT Account depreciation determinant drawing Driving Education e-accounting earn money Earning Economics Education Education Education Solutions Electrical Skills Electronics Email Energy (physics) Engineering Events Examination Failure Finance Finance Education Finance Solutions financial Financial Accounting FIR Focus on Study Football Forex Forex Trading Skills Fundraiser Gambling Gambling Addiction Goldsmith Google Adsense GST Guest Writers Gurpreet Singh HDFC Bank Health Education Help History Home Building Home Maintenance amp; Repair Home Remedies Course Index Number India Indian Language Infolinks Inspiration insurance internal audit International Finance Internet Internet Forum Investment Jobs amp; Careers Journal journal entries journal entry Kenya Laptop Basics Law Education Law Solutions Learning Lecture Legal Education Linear algebra Linear Programming Malaysia Management Accounting Management Education Management Solutions Marketing Education Mathematics Education matrices MCAT Medical and Surgery Education Mobile motivation MS Excel Music Skills Nepal Nigeria organisation Other Pakistan paypal paytm Personal Finance Philippines Photography Photoshop Software Picture Plumbing Education Probability Profiles Profit provision Quiz real estate rectification rectification of errors Relationships amp; Family Religious Studies Result Sahas Saudi Arabia Saving SBI School Accounting Science Education Secrets of Failure Self Identity Self-Learning Share Market Share Market Dictionary Singing Skills Skating Slideshow Solution Spiritual Education Sports Statistics Statistics Education stock Story Success svtuition Tablet Education Tailoring Skills Tally Tally Solutions Tally.ERP 9 tax Tax Solutions teaching Teaching Education Tech Simplify technical education Test Testimonials Travel Trigonometry tuition TV Shows UK USA variance analysis VAT vector Video Video on Demand videos Vocational Education Wealth Web design website Welding Skills Wife Window Movie Maker Wordpress working capital Yono App Yono Cash Youth youtube zigopay
false
ltr
item
Svtuition: Solution of Accounting Equation Problem
Solution of Accounting Equation Problem
https://1.bp.blogspot.com/-6eZd-A7Vvkw/VKeDIg-XFoI/AAAAAAAAQ2Q/D1V2TYQal6I/s1600/A6_big.jpg
https://1.bp.blogspot.com/-6eZd-A7Vvkw/VKeDIg-XFoI/AAAAAAAAQ2Q/D1V2TYQal6I/s72-c/A6_big.jpg
Svtuition
https://www.svtuition.com/2012/02/solution-of-accounting-equation-problem.html
https://www.svtuition.com/
http://www.svtuition.com/
http://www.svtuition.com/2012/02/solution-of-accounting-equation-problem.html
true
3065238051582539150
UTF-8
Not found any lecture VIEW ALL Learn More Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at vinod@svtuition.org for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock