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Question 7 Chapter 3 – Unimax Publications of Class 11

Question 7 Chapter 3 - Unimax Publications of Class 11

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Question 7 Chapter 3 – Unimax Publications of Class 11

7. Prepare the accounting equations on the basis of following transactions:
(i) X commenced business with cash Rs. 1,00,000.
(ii) Purchased goods on credit Rs. 20,000
(iii) Cash deposited into bank Rs. 10,000
(iv) Sold goods on credit Rs. 20,000
(v) Purchased machinery Rs. 7,500

The solution of Question 7 Chapter 3 – Unimax Publications of Class 11

Transactions Assets
=Liabilities + Capital
 Cash+Stock+ Bank+ Debtors+ Machinery  Creditors  
(i) Commenced business with cash+1,00,000     +1,00,000
(ii) Purchased goods on credit0+ 20,000   20,000+0
(iii) Cash deposited into bank-10,000+0+10,000  +0+0
(iv) Sold goods on credit+0-20,000+0+20,000 +0+0
(v) Purchased Machinery-7,500+0+0+0+7,500+0+0
        
 82,500+0+10,000+20,000+7,50020,000+ 1,00,000
 1,20,0001,20,000

BALANCE SHEET

LiabilitiesAmountAssetsAmount
Creditors20,000Cash82,500
Capital1,00,000Stock0
  Bank10,000
  Debtors20,000
  Machinery7,500
    
 1,20,000 1,20,000

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