Question

Create an accounting equation on the basis of the following transactions:

1. Rakesh started business with a capital of ₹ 1,50,000
2. Deposited money with the bank ₹ 80,000
3. Purchased goods from Mahesh and paid through debit card ₹ 25,000
4. Sold goods (costing ₹ 10,000) to Mohan for ₹ 14,000 who pays through debit card
5. Commission received by cheque and deposited the same in the bank ₹ 2,000
6. Paid office rent through ECS ₹ 6,000
7. Sold goods to Raman for ₹ 15,000 of which ₹ 5,000 was received at once

Answer 1

Transaction	Assets						Capital ₹	Creditors ₹
	Cash ₹	Stock ₹	Bank ₹	Debtors ₹
i. Rakesh started business	+ 1,50,000						+ 1,50,000
Equation	+ 1,50,000					=	+ 1,50,000
ii. Deposited money with the bank	− 80,000		+ 80,000
Equation	+ 70,000		+ 80,000			=	+ 1,50,000
iii. Purchased goods through debit card		+ 25,000						+ 25,000
Equation	+ 70,000	+ 25,000	+ 80,000			=	+ 1,50,000	+ 25,000
iv. Sold goods costing ₹ 10,000 to Mohan who paid ₹ 14,000 through debit card		− 10,000	+ 14,000				+ 4,000
Equation	+ 70,000	+ 15,000	+ 94,000			=	+ 1,54,000	+ 25,000
v. Commission received by cheque and deposited the same into bank			+ 2,000				+ 2,000
Equation	+ 70,000	+ 15,000	+ 96,000			=	+ 1,56,000	+ 25,000
vi. Paid office rent through ECS			− 6,000				− 6,000
Equation	+ 70,000	+ 15,000	+ 90,000			=	+ 1,50,000	+ 25,000
vii. Sold to Raman cash received ₹ 5,000	+ 5,000	− 15,000	+ 0	+ 10,000
Equation	+ 75,000	+ 0	+ 90,000	+ 10,000		=	+ 1,50,000	+ 25,000