Page 23 - DEBK-XI(2020)

Accounting Equation 5.5

3. Draw an Accounting Equation from the following transactions:

(i) Commenced business with cash ` 50,000, cheque ` 1,00,000, goods ` 30,000 and furniture
` 20,000.
(ii) Personal Car of the proprietor was sold for ` 1,00,000 against cheque which he deposited
in his Savings Account.
(iii) An amount of ` 50,000 was transferred from his Savings Account to the firm’s Bank
Account.
(iv) A car of ` 6,00,000 was purchased for office use. It was paid by taking loan from Bank
of ` 5,00,000 and issue of cheque of ` 1,00,000.
(v) Sold goods to Ajay on credit costing ` 4,000 for ` 5,000.

(vi) Sold goods for cash costing ` 12,000 for ` 16,000.
(vii) Purchased goods for cash ` 40,000.
(viii) Purchased goods on credit for ` 20,000.

(ix) Paid rent ` 3,000 including ` 2,000 in advance.
(x) Paid salaries ` 2,000.

(xi) Sold goods costing ` 8,000 for ` 10,000.
(xii) Salaries outstanding ` 1,000.
(xiii) Charge depreciation on furniture ` 500.

Solution: Refer to Page No. 5.6.