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Question 8 Chapter 3 – Unimax Publications of Class 11
8. Prepare accounting equation on the basis of the following:
(i) Sahil started business with cash Rs. 20,000
(ii) Sahil purchased machinery for cash Rs. 4,000
(iii) Sahil paid rent Rs. 500
(iv) Sahil purchased goods on credit Rs. 5,000
(v) Sahil sold goods (cost price Rs. 3,500) for Rs. 6,200 on cash.
The solution of Question 8 Chapter 3 – Unimax Publications of Class 11
| Transactions | Assets | =Liabilities | + Capital | ||
| Cash | + Machinery | + Stock | Creditors | ||
| (i) Sahil started business with cash | +20,000 | +20,000 | |||
| (ii) Purchased Machinery for cash. | -4,000 | + 4,000 | +0 | ||
| (iii) Paid rent | -500 | +0 | -500 | ||
| (iv) Purchased goods on credit | +0 | +5,000 | +5,000 | +0 | |
| (v) Sahil sold goods on cash | +6,200 | -3,500 | +0 | +2,700 | |
| 21,700 | +4,000 | +1,500 | 5,000 | +22,200 | |
| 27,200 | 27,200 | ||||
BALANCE SHEET
| Liabilities | Amount | Assets | Amount |
| Creditors | 22,200 | Cash | 21,700 |
| Capital | 5,000 | Stock | 4,000 |
| Machinery | 1,500 | ||
| 27,200 | 27,200 |
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