Page 40 - ISCDEBK-XI

6.6 Double Entry Book Keeping—ISC XI

Solution: Refer to Illustration 4 on Page No. 6.5.

No. Transactions Assets = Liabilities + Capital
Cash + Stock = Ms. Neha (Creditor) + Capital

` ` ` `
1. Started business
with cash 2,00,000 + 0 = 0 + 2,00,000
2. Purchased goods from
Ms. Neha 0 + 50,000 = 50,000 + 0
New Equation 2,00,000 + 50,000 = 50,000 + 2,00,000
3. Withdrew goods for
personal use 0 + (10,000) = 0 + (10,000)
New Equation 2,00,000 + 40,000 = 50,000 + 1,90,000
4. Sold goods for cash 60,000 + (35,000) = 0 + 25,000
New Equation 2,60,000 + 5,000 = 50,000 + 2,15,000
5. Introduced fresh capital 50,000 + 0 = 0 + 50,000

New Equation 3,10,000 + 5,000 = 50,000 + 2,65,000
6. Paid telephone bills (3,000) + 0 = 0 + (3,000)
New Equation 3,07,000 + 5,000 = 50,000 + 2,62,000
7. Goods goods at a profit
of 25% on cost 2,500 + (2,000) = 0 + 500
New Equation 3,09,500 + 3,000 = 50,000 + 2,62,500
8. Purchased motorcycle
for personal use (18,000) + 0 = 0 + (18,000)
New Equation 2,91,500 + 3,000 = 50,000 + 2,44,500
9. Paid rent (18,000) + 0 = 0 + (18,000)
New Equation 2,73,500 + 3,000 = 50,000 + 2,26,500
10. Paid Salaries (12,000) + 0 = 0 + (12,000)
New Equation 2,61,500 + 3,000 = 50,000 + 2,14,500

BALANCE SHEET OF RAHUL
as at ...
Liabilities ` Assets `
Capital 2,14,500 Cash 2,61,500
Ms. Neha (Creditor) 50,000 Stock 3,000
2,64,500 2,64,500