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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 credit | 0 | + 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 | +7,500 | 20,000 | + 1,00,000 | |
| 1,20,000 | 1,20,000 | ||||||
BALANCE SHEET
| Liabilities | Amount | Assets | Amount |
| Creditors | 20,000 | Cash | 82,500 |
| Capital | 1,00,000 | Stock | 0 |
| Bank | 10,000 | ||
| Debtors | 20,000 | ||
| Machinery | 7,500 | ||
| 1,20,000 | 1,20,000 |
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