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Accounting Equation - Assignment

The document provides an accounting equation and transactions to prepare the accounting equation: 1) The accounting equation is Assets = Liabilities + Capital, and gives examples calculating missing values. 2) There are 14 transactions including starting the business, selling goods and furniture, depreciating machinery, taking a loan for a building, buying and selling securities, and receiving/paying rent, interest, and commission. 3) The goal is to use the accounting equation and transactions to determine the assets, liabilities, and capital amounts.

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2K views1 page

Accounting Equation - Assignment

The document provides an accounting equation and transactions to prepare the accounting equation: 1) The accounting equation is Assets = Liabilities + Capital, and gives examples calculating missing values. 2) There are 14 transactions including starting the business, selling goods and furniture, depreciating machinery, taking a loan for a building, buying and selling securities, and receiving/paying rent, interest, and commission. 3) The goal is to use the accounting equation and transactions to determine the assets, liabilities, and capital amounts.

Uploaded by

Time to study
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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ACCOUNTING EQUATION

1. Determine the missing amount on the basis of the Accounting Equation:


Assets = Liabilities + Capital
i. 20,000 = ? + 15000
ii. ? = 5,000 + 10,000
iii. 10,000 = 6,000 + ?
2. Prepare accounting equation from the following transactions :
i. Neeraj started business with cash Rs 7,50,000 , goods Rs 3,300, machinery Rs
50,000 and furniture Rs 25,000.
ii. 1/3rd of above goods sold at a profit of 33.3 % on sales and half of the payment is
received in cash.
iii. Depreciation on machinery provided @ 10 % for 6 months.
iv. Sold extra furniture at cost to Amar for Rs 1,000, Amar paid Rs 600 in cash and
accepted a bill at three months for the balance.
v. Paid three months advance rent for office accommodation Rs 2,100.
vi. Purchased a office building for Rs 1,50,000 : giving Rs 50,000 in cash and the
balance through loan.
vii. Paid half of the loan taken for building with interest at 20 %.
viii. Received Rs 400 from Amar against the Bill Receivable on its maturity.
ix. Purchased securities Rs 10,000.
x. Sold securities costing Rs 1,000 for Rs 1,500.
xi. Rent outstanding Rs 5,000 and Rent paid Rs 1,000.
xii. Interest on capital @ 10 %.
xiii. Accrued interest Rs 1,000.
xiv. Received commission Rs 1,000 out of which ¼ relates for next year.

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