Analyze the following transactions $($for a hypothetical company$)$ using the balance sheet equation format i$.$e$.A=L+O.$E$.($ignore dates$).$ Clearly show the closing balonces for each account. Show all revenues and expenses related accounts under the retained earnings column.

a$.$ The company issued $100,000$ shares, face value is Rs $10$ per share and paid$-$in capital in excess of par value is Rs $7,600,000.$ The entire amount was received in cash.

b$.$ Company purchased merchandise inventory from the supplier worth Rs $250,000$ by bearing $50\%$ of the cost as upfront cash payment and the remaining on open account.

c$.$ Company invested Rs $500,000$ for purchasing an equipment for supporting operations. Entire amount was paid in cash.

d$.$ Company purchased office supplies worth Rs $100,000$ by paying cash.

e$.$ Company sold Rs $100,000$ worth of inventory for Rs $180,000$ to its customers. Rs $70,000$ was received at the time of sale and the balance to be paid by the customers in a few weeks.

f$.$ One investor who had purchased the shares worth Rs $50,000$ of the company sold her entire stake to one of the employees of the company for Rs $75,000.$

B$.$ Depreciation expense of Rs $5,000$ was charged on the equipment.

h$.$ No further office supplies were purchased in this period, and at the end of the accounting period the office supplies remaining in the company were worth $Rs40,000.$

i$.$ Company paid back all the remaining outstanding dues to the supplier.

Company borrowed Rs $100,000$ for $6$ months. An interest expense of Rs $2,500$ was recognized.

k$.$ Cash dividend of Rs $2,500$ was paid to the shareholders.

$8710$

$20$ Marks