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    Accounting Equation Exercise 1

    Uploaded by

    Abife Amatong
    This document provides details of 10 transactions for Mr. N's business and 10 transactions for Mr. P's business. It instructs the reader to use the accounting equation to show how each transaction affects assets, liabilities, and capital for the businesses. The accounting equation states that assets must equal liabilities plus capital.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Accounting Equation Exercise 1

    Uploaded by

    Abife Amatong
    157 views3 pages
    This document provides details of 10 transactions for Mr. N's business and 10 transactions for Mr. P's business. It instructs the reader to use the accounting equation to show how each transaction affects assets, liabilities, and capital for the businesses. The accounting equation states that assets must equal liabilities plus capital.

    Original Title

    ACCOUNTING EQUATION EXERCISE 1.docx

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    This document provides details of 10 transactions for Mr. N's business and 10 transactions for Mr. P's business. It instructs the reader to use the accounting equation to show how each transaction affects assets, liabilities, and capital for the businesses. The accounting equation states that assets must equal liabilities plus capital.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    157 views3 pages

    Accounting Equation Exercise 1

    Uploaded by

    Abife Amatong
    This document provides details of 10 transactions for Mr. N's business and 10 transactions for Mr. P's business. It instructs the reader to use the accounting equation to show how each transaction affects assets, liabilities, and capital for the businesses. The accounting equation states that assets must equal liabilities plus capital.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    ACCOUNTING EQUATION EXERCISE 1

    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
    ACCOUNTING EQUATION EXERCISE 2

    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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