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Published date Dec 24, 2018

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26-10-2014 (Financial Accounting 1st semester BBA)

26-10-2014

Accounting Equitation: According to the equitation Assets is equal to Liabilities plus Capital.

Numerical Problems:

Show the effect of following transaction an accounting equitation.

Q.1 Mr. Ahmad

  1. Started business with cash rupees 500,000
  2. He Purchased building for rupees 200,000
  3. He purchased furniture for rupees 30,000
  4. He purchased goods for rupees 1,50,000
  5. He sold goods costing rupees 60,000 for cash rupees 80,000
  6. He purchased goods for rupees 30,000 on credit basis
  7. He sold goods costing 50,000 for rupees 70,000 on credit basis
  8. Creditor was paid for rupees 30,000
  9. Cash received from the debtor rupees 40,000
  10. Goods costing 25,000 lost by fire
  11. He paid salaries and telephone bill rupees 7000
  12. He boarded money from the bank as loan for rupees 50,000

 

M/S Mr. Ahmad

Assets = Liabilities + Capital

Assets

Liabilities

Capital

Cash + Building + Furniture + Goods + Debtor

Creditor + Bank Loan

Cash

Building

Furniture

Goods

Debtor

500,000

 

 

 

 

 

 

500,000

500,000

- 200,00

300,000

200,000

 

 

 

 

 

500,000

300,000

- 30,000

2,70,000

 

30,000

 

 

 

 

500,000

270,000

-1,50,000

1,20,000

 

 

1,0,000

 

 

 

500,000

120,000

+80,000

200,000

 

 

150,000

-60,000

90,000

 

 

 

500,000

+20,000

5,20,000

 

 

 

90,000

+30,000

120,000

 

30,000

 

520,000

 

 

 

120,000

-50,000

70,000

70,000

 

 

520,000

+20,000

540,000

200,000

-30,000

170,000

 

 

 

 

30,000

-30,000

0

 

 

170,000

+40,000

210,000

 

 

 

70,000

-40,000

30,000

 

 

 

 

 

 

70,000

-25,000

45,000

 

 

 

540,000

-25,000

515,000

210,000

-7000

203,000

 

 

 

 

 

 

515,000

-7000

508,000

203,000

+50,000

253,000

 

 

 

 

 

50,000

508,000

253,000+200,000+30,000+45,000+30,000

50,000+508,000

558,000

558.,000

 

 

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