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P. 20
Accounting Equation 5.3
Capital Capital ` 3,60,000 2,000 3,62,000 (10,000) 3,52,000 (10,000) 3,42,000 500 500 3,42,000 0 3,42,000
+ + + + + + + + + + – + + +
Liabilities Creditors ` 0 0 0 0 0 0 0 0 0 0 0 3,42,000
= = = = = = = = = = = = = =
Debtors ` 0 11,000 11,000 0 11,000 0 11,000 0 11,000 0 11,000 3,42,000
+ + + + + + + + + + + +
0 0 0 0 0
Furniture ` 50,000 50,000 50,000 50,000 50,000 50,000
+ + + + + + + + + + + +
Machinery ` 1,00,000 0 1,00,000 (10,000) 90,000 0 90,000 0 90,000 0 90,000
+ + + + + + + + + + + +
Assets 0 0 0
Solution: Refer to Illustration 1 Page No. 5.2.
Stock ` 60,000 (20,000) 40,000 40,000 40,000 40,000 (10,000) 30,000
+ + + + + + + + + + + +
Bank ` 1,00,000 0 1,00,000 0 1,00,000 0 1,00,000 0 1,00,000 10,000 1,10,000
+ + + + + + + + + + + +
Cash ` 50,000 11,000 61,000 0 61,000 (10,000) 51,000 0 51,000 0 51,000
Transaction No. (i) (ii) New Equation (iii) New Equation (iv) New Equation (v) New Equation (vi) New Equation
