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    Problem 1: Use The Accounting Equation To Show Their Effect On His Assets, Liabilities and Capital

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    Madeeha Khan
    The document provides details of three problems involving accounting transactions and the accounting equation. Problem 1 lists transactions for a business that started with capital of $50,000 and involved purchases and sales of goods and machinery, both for cash and on credit. Problem 2 lists 10 transactions for a business that started with capital of $100,000, involving purchases and sales of goods and furniture, payments received and made, and cash deposits and withdrawals from the bank. Problem 3 lists 10 similar transactions for another business that started with $50,000 in capital.

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    Problem 1: Use The Accounting Equation To Show Their Effect On His Assets, Liabilities and Capital

    Uploaded by

    Madeeha Khan
    319 views2 pages
    The document provides details of three problems involving accounting transactions and the accounting equation. Problem 1 lists transactions for a business that started with capital of $50,000 and involved purchases and sales of goods and machinery, both for cash and on credit. Problem 2 lists 10 transactions for a business that started with capital of $100,000, involving purchases and sales of goods and furniture, payments received and made, and cash deposits and withdrawals from the bank. Problem 3 lists 10 similar transactions for another business that started with $50,000 in capital.

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    The document provides details of three problems involving accounting transactions and the accounting equation. Problem 1 lists transactions for a business that started with capital of $50,000 and involved purchases and sales of goods and machinery, both for cash and on credit. Problem 2 lists 10 transactions for a business that started with capital of $100,000, involving purchases and sales of goods and furniture, payments received and made, and cash deposits and withdrawals from the bank. Problem 3 lists 10 similar transactions for another business that started with $50,000 in capital.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    319 views2 pages

    Problem 1: Use The Accounting Equation To Show Their Effect On His Assets, Liabilities and Capital

    Uploaded by

    Madeeha Khan
    The document provides details of three problems involving accounting transactions and the accounting equation. Problem 1 lists transactions for a business that started with capital of $50,000 and involved purchases and sales of goods and machinery, both for cash and on credit. Problem 2 lists 10 transactions for a business that started with capital of $100,000, involving purchases and sales of goods and furniture, payments received and made, and cash deposits and withdrawals from the bank. Problem 3 lists 10 similar transactions for another business that started with $50,000 in capital.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Problem 1

    Use the accounting equation to show their effect on his assets, liabilities and
    capital.

     Commenced business with a Capital of 50,000.


     Bought Machinery for cash 10,000.
     Purchased goods for cash 15,000.
     Purchased goods from A on credit 5,000.
     Sold goods for cash 10,000.
     Paid to A 2,000.
     Sold goods to B on credit 3,000.

    Problem 2
    Show that the accounting equation is satisfied after taking into consideration
    each of the following transactions in the books of Mr. N

    1. Started business with capital 1,00,000


    2. Bought furniture 25,000
    3. Bought goods for cash 20,000
    4. Bought goods from Ram on Credit 5,000
    5. Sold goods for cash for 15,000
    6. Sold goods to Shyam on credit 8,000
    7. Paid cash to Ram 4,000
    8. Received cash from Shyam 5,000
    9. Paid Cash into Bank 25,000
    10. Withdrawn from bank 10,000
    Problem 3
    Following are the accounting transactions relating to Mr. P's business. Use the
    accounting equation to show their effect on his assets, liabilities and capital.

    1. Commenced business with a Capital of 50,000


    2. Bought Machinery for cash 10,000
    3. Purchased goods for cash 15,000
    4. Purchased goods from A on credit 5,000
    5. Sold goods for cash 10,000
    6. Paid to A 2,000
    7. Sold goods to B on credit 3,000
    8. Paid into Bank 6,000
    9. Paid to A by cheque 1,000
    10. Received from B a cheque for 2,000

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