Accounting Equation S.No Transaction Assets 1. Started business with 75,000 cash and 325,000 goods Cash + Stock + Debtor +75,000 25,000 75,000 25,000 -2,000 Liabilities Capital + Creditors 1,00,000 1,00,000 -2,000 (Expense) 2. Rent paid q5 73,000 25,000 98,000 Bought goods for 730,000 cash and on 244,000 3. -30,000 +74,000 +44,000 credit 43,000 99,000 44,000 98,000 4. Goods costing 50,000 sold at a 25% profit, out of which 7 27,500 received in Cash +27,500-50,000 +35,000 70,500 49,000 35,000 44,000 -20,000 +12,500 (Profit) 1,10,500 -20,000 (Drawings) 90,500 5. Purchased a Motor-cycle for personal use 50,500 49,000 35,000 44,000 Working Note: Calculating selling price Cost of goods sold = 50,000 Add: 25% profit of 750,000 = 12,500 Hence, selling price for goods sold = 62,000 Less cash received - 27,500 Credit sales = 35,000 Question 8 (8) Prepare Accounting Equation from the following and also prepare a Balance Sheet:- 1. Raghu started business with Cash #1,50,000 2. Bought goods for cash +80,000 and on credit for 240,000 3. Goods costing 375,000 sold at a profit of 3312 %. Half the payment received in cash 4. Goods costing 710,000 sold for $12,000 on credit 5. Paid for Rent 32,000 and for salaries 74,000 6. Goods costing 20,000 sold for 118,500 for Cash