Page 41 - ISCDEBK-XI

Accounting Equation 6.7

0 0 0
Capital ` 4,60,000 1,200 (Loss) 4,58,800 4,58,800 10,000 4,48,800 400 4,48,400 4,48,400 4,000 4,52,400 2,000 4,50,400 4,50,400

+ Outstanding + – + + + – + – + + + + + – + + +

Liabilities + Capital + Unearned Rent (`) Comm. (`) 0 + 0 0 + 0 0 + 0 0 + 0 0 + 0 10,000 + 0 10,000 + 0 0 + 0 10,000 + 0 0 + 0 10,000 + 0 0 + 0 10,000 + 0 0 + 0 10,000 + 0 0 + 10,000 +

+ 4,000 4,000
+ + + + + + + + + + + + + + + + +
Creditors ` 40,000 0 40,000 0 40,000 0 40,000 0 40,000 0 40,000 –40,000 0 0 0 0 0

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

0 0 0 0 0 0 0
Bank ` 40,000 40,000 40,000 6,400 46,400 46,400 36,000 10,400 10,400 10,400

+ + + + + + + + + + + + – + + + + +
Prepaid Insu. (`) 0 0 0 0 0 0 0 0 0 0 0 0

2,000 2,000 2,000 2,000 2,000
+ + + + + + + + + + + + + + + + + +
Debtors ` 20,000 6,800 26,800 0 26,800 0 26,800 6,800 20,000 0 20,000 0 20,000 0 20,000 0 20,000

Solution: Refer to Illustration 5 on Page No. 6.5.
Assets + + + + + + + + – + + + + + + + + +

Furniture ` 20,000 0 20,000 0 20,000 0 20,000 0 20,000 0 20,000 0 20,000 2,000 18,000 0 18,000

+ + + + + + + + + + + + + + – + + +

Stock ` 1,00,000 12,000 88,000 0 88,000 0 88,000 0 88,000 0 88,000 0 88,000 0 88,000 0 88,000

+ + – + + + + + + + + + + + + + + +
Cash ` 3,60,000 4,000 3,64,000 –40,000 3,24,000 0 3,24,000 0 3,24,000 –2,000 3,22,000 0 3,22,000 0 3,22,000 4,000 3,26,000

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