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Question 18 Chapter 3 – Unimax Publications of Class 11
18. Prepare accounting equations on the basis of following transactions :
(i)Commenced business with cash RS. 75,000
(ii) Rent paid in advance Rs. 840
(iii) Purchased goods for cash Rs. 25,000 and credit Rs. 18,000
(iv) Sold goods (costing Rs. 12,000) for cash Rs. 15,000
(v) Paid salaries Rs. 2,400 and salaries outstanding Rs. 600
(vi) Bought motor-cycle for personal use Rs. 11,000
The solution of Question 18 Chapter 3 – Unimax Publications of Class 11:
| Transactions | Assets | Liabilities | + Capital | |||
| Cash | +Prepaid | +Stock | Creditors | +O/S salaries | ||
| (i)Commenced business with cash | +75,000 | +75,000 | ||||
| (ii) Rent paid in advance | -840 | +840 | +0 | |||
| (iii) Purchased goods for cash and credit | -25,000 | +0 | +43,000 | 18,000 | +0 | |
| (iv) Sold goods for cash | +15,000 | +0 | -12,000 | 0 | +3,000 | |
| (v) Paid salaries and salaries outstanding | -2,400 | +0 | +0 | 0 | +600 | -3,000 |
| (vi) Bought motor-cycle for personal use | -11,000 | +0 | +0 | +0 | +0 | 11,000 |
| -50,760 | +840 | +31,000 | 18,000 | +600 | +64,000 | |
| +82,600 | +82,600 | |||||
BALANCE SHEET
| Liabilities | Amount | Assets | Amount |
| Creditors | 18,000 | Cash | 50,760 |
| Outstanding Salaries | 600 | Prepaid rent | 840 |
| Capital | 64,000 | Stock | 31,000 |
| 82,600 | 82,600 |
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