q? Accounting Equation Transaction S.NO Assets Capital Liabilities + = Creditors Furniture + Stock 1. Sandeep began his company with cash Cash + 1,00,000 1,00,000 - 5,000 95,000 1,00,000 1,00,000 2. Bought furniture with cash + 5,000 5,000 1,00,000 3. Bought goods with cash 20,000 75,000 5,000 1,00,000 + 20,000 20,000 + 36,000 56,000 4. Bought goods on credit + 36,000 35,000 5,000 5. Paid for rent 75,000 -700 74,300 +48,000 1,22,300 5,000 36,000 1,00,000 -700 99,300 +8,000 1,07,300 6. 56,000 - 40,000 16,000 Goods casting 240,000 sold at a 20% profit for cash 5,000 36,000 Working Note: Cost of Goods Sold = 40,000 Add: Profit 20% of Rs 40,000 = 8,000 Hence, Selling Price = 46,000 Question 2 (A) Show the Accounting Equation on the basis of the following and present a balance sheet on the last new equation balances: 1. Manu started business with cash 50,000 2. 500 3. 4,000 4. 700 Bought furniture for Bought goods on credits Sold goods on cash (cost ?500) for Rent Received Bought goods for cash Withdrew for personal use 5. 200 6. 1,000 7. 700 8. Paid to creditors 400 9. Paid for salaries 200