illustrate different kinds of events, three more transactions have been added · Part 3

Credit purchases ( ) Electricity charges due but not yet paid(outstanding electricity bills) ( ) Godown rent paid in advance(prepaid godown rent) ( ) Sales ( ) Fresh capital introduced ( ) Drawings ( ) Discount paid Liabilities Revenue Expense , , , , , , , , , , , (iii) , , , , , , Illustration Analyse the effect of each transaction on assets and liabilities and show that the both sides of Accounting Equation (A = L + C) remains equal : Introduced Rs. , , as cash and Rs. , by stock. Salary Account ( ) , Cash Account ( ) , , ( ) , , ( ) , ( ) , ( ) , Rajani Enterprises Account ( ) , ( ) , Bank’s Account ( ) , , ( ) , ( ) , Purchased plant for Rs. , , by paying Rs. , in cash and balance at a later date. (iii) Deposited Rs. , , into the bank. (iv) Purchased office furniture for Rs. , , and made payment by cheque. (v) Purchased goods worth Rs. , for cash and for Rs. , in credit. (vi) Goods amounting to Rs. , was sold for Rs. , on cash basis. (vii) Goods costing to Rs. , was sold for Rs. , , on credit. (viii) Cheque issued to the supplier of goods worth Rs. , . (ix) Cheque received from customer amounting to Rs. , . (x) Withdrawn by owner for personal use Rs. , . Solution Transaction (i) It affects Cash and Inventory on the assets side and Capital on the other hand. There is increase in cash by Rs. , , and Inventory of goods by Rs. , on assets side of the equation. Capital is increased by Rs. , , . Liabilities + Capital + Inventory(Stock) , , + , , , Total , , , , Transaction (ii) It affects Cash and Plant and Machinery on the assets side and liabilities on the other side of the equation. There is an increase in plant and machinery by Rs. , , and decrease in cash by Rs. , . Liability to pay to the supplier of plant and machinery increases by Rs. , , . Liabilities+ Capital +Inventory + Plant and