Rs. , , (b) Purchased machinery on credit Rs. , (c) Purchased goods for cash Rs. , (d) Purchased car for personal use Rs.
, (e) Paid to creditors in full settlement Rs. , (f) Sold goods for cash costing Rs. , Rs. , (g) Paid rent Rs.
, (h) Commission received in advance Rs. , Prepare the Accounting Equation to show the effect of the above transactions on the assets, liabilities and capital. ( Ans: Assets = Cash Rs. , + Machine Rs.
, + Goods Rs. , = Rs. , ; Liabilities = Commission Rs. , + Capital Rs.
, = Rs. , ) . Use accounting equation to show the effect of the following transactions of M/s Royal Traders: (a) Started business with cash Rs. , , (b) Purchased goods for cash Rs.
, (c) Rent received Rs. , (d) Salary outstanding Rs. , (e) Prepaid Insurance Rs. , (f) Received interest Rs.
(g) Sold goods for cash (Costing Rs. , ) Rs. , (h) Goods destroyed by fire Rs. ( Ans: Assets = Cash Rs.
, , + Goods Rs. , + Prepaid insurance Rs. , ; Liabilities = Outstanding salary Rs. , + Capital Rs.
, , ) . Show the accounting equation on the basis of the following transaction: (a) Udit started business with: Rs. , , Goods Rs. , , (b) Purchased building for cash Rs.
, , (c) Purchased goods from Himani Rs. , (d) Sold goods to Ashu (Cost Rs. , ) Rs. , (e) Paid insurance premium Rs.
, (f) Rent outstanding Rs. , (g) Depreciation on building Rs. , (h) Cash withdrawn for personal use Rs. , (i) Rent received in advance Rs.
, (j) Cash paid to himani on account Rs. , (k) Cash received from Ashu Rs. , ( Ans : Assets = Cash Rs. , , + Goods Rs.
, , + Building Rs. , , + Debitors Rs. , = , , : Laibilities = Creditors Rs. , + Outstanding Rent Rs.
, + Rent Rs. , + Capital Rs. , , = Rs. , , ) .
Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation: