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19 June 2011

I have a question and not able to solve it. Question is:-

pranoy co. made the following transaction . Use the accounting equation to show the effect of the below transaction on his assets,liabilities and capital after every transaction and also prepare the company's balance sheet finally after all the transaction.

Commenced business with a cash of30000
Purchased goods for cash for12000 and cradit for18000
Sold goods for cash24000 costing18000
Rent paid300
Rent outstanding was60
Bought furniture3000 on cradit
Bought refrigerator for personal use3000
Purchased building for cash12000

Please solved this question ............................................................

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5 Replies

CA Mallika Chaudhary (CWA Final and CA) (418 Points)
Replied 19 June 2011

EFFECTS ON ASSETS, LIABILITIES & CAPITAL :-

1)Commenced ..... 30000 : + capital & +Assets

2)Purch (cash) : +Assets & -Assets

3)purch credit : + Assets & +liab

4)sold goods cash : - Assets 18000, + assets 24000, + capital 6000

5) rent paid cash : - Assets, -capital

6) Rent o/s : -capital, +liab

7) furniture cr: +assets, +liab

8) personal use furniture : -capital , - assets ( for the cash paid)

9) purch building fr cash : +assets, - assets

BALANCE SHEET

Liabilities	Amount (Rs.)	Assets	Amount(Rs.)
capital 30,000		building	12,000
+profit/loss a/c 5,640		furniture	3,000
-drawings (3,000)	32,640
creditors for purch	18,000	stock	12,000
Rent o/s	60
creditors for furniture	3,000	cash	26,700
TOTAL	53,700	TOTAL	53,700

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CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 19 June 2011

Originally posted by : Mallika Chaudhary
	EFFECTS ON ASSETS, LIABILITIES & CAPITAL :- 1)Commenced ..... 30000 : + capital & +Assets 2)Purch (cash) : +Assets & -Assets 3)purch credit : + Assets & +liab 4)sold goods cash : - Assets 18000, + assets 24000, + capital 6000 5) rent paid cash : - Assets, -capital 6) Rent o/s : -capital, +liab 7) furniture cr: +assets, +liab 8) personal use furniture : -capital , - assets ( for the cash paid) 9) purch building fr cash : +assets, - assets BALANCE SHEET Liabilities Amount (Rs.) Assets Amount(Rs.) capital 30,000 building 12,000 +profit/loss a/c 5,640 furniture 3,000 -drawings (3,000) 32,640 creditors for purch 18,000 stock 12,000 Rent o/s 60 creditors for furniture 3,000 cash 26,700 TOTAL 53,700 TOTAL 53,700

AGREED

rakesh kumar verma (IPCC) (75 Points)
Replied 19 June 2011

Thanks a lot ..........................................................

CA Mallika Chaudhary (CWA Final and CA) (418 Points)
Replied 20 June 2011

My pleasure :)

pawan yadav (C.A. Final) (45 Points)
Replied 20 June 2011

BALANCE SHEET

Liabilities	Amount (Rs.)	Assets	Amount(Rs.)
capital 30,000		building	12,000
+profit/loss a/c 5,640		furniture	3,000
-drawings (3,000)	32,640	Stock	12,000
creditors for purch	18,000	Cash	26,700
Rent o/s	60
creditors for furniture	3,000
TOTAL	53,700	TOTAL	53,700