Page 37 - ISCDEBK-XI

Accounting Equation 6.3

Capital ` 20,50,000 0 20,50,000 0 20,50,000 0 20,50,000 42,000 20,92,000 (4,800) 20,87,200

+ + + + + + + + + + + +
XYZ Ltd. ` 0 0 0 2,10,000 2,10,000 0 2,10,000 (2,10,000) 0 0 0
Liabilities + Capital + Creditor for Car (`) + 0 + 45,000 + 45,000 + 0 + 45,000 + 0 + 45,000 + 0 + 45,000 + 0 + 45,000

+ + + + + + + + + + + +
0 0 0 0 0
Bank Loan ` 2,00,000 2,00,000 2,00,000 2,00,000 2,00,000 2,00,000

= = = = = = = = = = = = =

Prepaid Comm. (`) 0 0 0 0 0 0 0 0 0 19,200 19,200

+ + + + + + + + + + + +
Tables ` 0 0 0 0 0 0 0

10,000 10,000 10,000 10,000
+ + + + + + + + + + + +
Chairs ` 0 0 0 2,10,000 2,10,000 0 2,10,000 0 2,10,000 0 2,10,000

Assets + + + + + + + + + + + +
Solution: Refer to Illustration 2 on Page No. 6.2.

0 0 0 0 0
Car ` 1,30,000 1,30,000 1,30,000 1,30,000 1,30,000 1,30,000

+ + + + + + + + + + + +

Bank ` 7,50,000 0 7,50,000 0 7,50,000 (10,000) 7,40,000 (1,68,000) 5,72,000 0 5,72,000

+ + + + + + + + + + + +
Cash ` 15,00,000 (85,000) 14,15,000 0 14,15,000 0 14,15,000 0 14,15,000 (24,000) 13,91,000

Transactions No. (i) (ii) New Equation (iii) New Equation (iv) New Equation (v) New Equation (vi) New Equation