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6.8 Double Entry Book Keeping—ISC XI
BALANCE SHEET
as at ...
Liabilities ` Assets `
Unearned Commission 4,000 Cash 3,26,000
Outstanding Rent 10,000 Debtors 20,000
Capital 4,50,400 Stock 88,000
Prepaid Insurance 2,000
Bank 10,400
Furniture 18,000
4,64,400 4,64,400
Illustration 6.
Show the accounting equation on the basis of the following transactions and also show the
Balance Sheet: `
1. Commenced business with cash ` 5,00,000, Goods ` 1,00,000
and Furniture ` 10,000.
2. Sold goods to Rakesh on credit costing ` 4,000 for 5,000
3. Paid rent in advance 5,000
4. Salary outstanding 1,000
5. Charge depreciation on furniture 1,000
6. Goods destroyed by fire 5,000
7. Purchased household goods for ` 1,50,000, giving ` 50,000 in cash
and balance through a loan
8. Accrued Interest 5,000
9. Commission received in Advance 10,000
10. Interest due but not paid 1,000
11. Prepaid Insurance 7,000
12. Creditors accepted a bill for 15,000
13. Interest on Capital 10,000
14. Interest on Drawings 3,000
15. Transfer from capital to loan 50,000
Use the following headings in equation:
Cash + Stock + Debtors + Furniture + Prepaid Expenses + Accrued Income = Unearned
Commission + Loan + Bills Payable (B/P) + Outstanding Expenses (O/s Expenses) + Capital.
