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Total: (We Will Overdraw Rs.500 From Bank Account)

The document shows accounting entries for assets, liabilities, and capital for a business: 1) The business originally had Rs. 900 in assets after purchasing a van and market stall. Total liabilities included a Rs. 5,000 loan from Mr. C. 2) Several transactions are listed that impact various asset and liability accounts, such as purchasing inventory, receiving payment from debtors, paying creditors. 3) The ending balances show Rs. 1,500 in total assets, Rs. 6,500 in total liabilities. Capital is calculated as total assets minus total liabilities, equaling Rs. 1,500.

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Daxhing Raja
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57 views6 pages

Total: (We Will Overdraw Rs.500 From Bank Account)

The document shows accounting entries for assets, liabilities, and capital for a business: 1) The business originally had Rs. 900 in assets after purchasing a van and market stall. Total liabilities included a Rs. 5,000 loan from Mr. C. 2) Several transactions are listed that impact various asset and liability accounts, such as purchasing inventory, receiving payment from debtors, paying creditors. 3) The ending balances show Rs. 1,500 in total assets, Rs. 6,500 in total liabilities. Capital is calculated as total assets minus total liabilities, equaling Rs. 1,500.

Uploaded by

Daxhing Raja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Q.

19 ASSETS
Cash in Hand Cash at Bank Merchandise
400 1,100
Loan from C 5,000
5,400
Bought Van -4,500
900
Bought Market Stall -900 -1,100
Nill Nill
Purchased Merchandise 500
(We will overdraw Rs.500 -500 1,500
from bank account) Nill
TOTAL Nill Nill 1,500

Capital= Total Assets- Total Liabilities

Capital=(1,500+2,000+4,500)-(500+1,000+5,000)

Capital=8,000-6,500

Capital=1,500
Q.20
Particulars Assets Liabilities
i. Paid to creditor Rs.70 in cash Cash decreases A/P Decreases
ii. Bought furniture for Rs.2,000 Furniture Increases
and paid through cheque Bank Bal. Decreases
iii. Bought goods on credit Rs.275 Merchandise Increases A/P Increases
iv.The owner introduced further Rs.500 cash into fir Cash Increases
v. Borrowed from Mr.J Rs.200 in cash Cash Increases Loan Increases
vi. Received cheque from debtor Rs.50 Bank Bal. Increases
A/R Decreases
vii.Bought building for Rs.5,000 and paid Building Increases
through cheque Bank Bal. Decreases
viii. Bought a van on credit Rs.8,700 Van Increases A/P Increases
ix.Paid to creditor Rs.10,000 Cash Decreases A/P Decreases
x.Purchased merchandise Rs.1,400 Merchandise Increases
Cash Decreases
xi.Purchased goods on account Merchandise Increases A/P Increases
xii.Sold goods for Rs.500, Costing Rs.400 Cash Increases Rs.500
Merchandise Decreases Rs.400
xiii.Goods destroyed by fire Rs.100 Merchandise Decreases Rs.100
LIABILITIES
Market Stall Van Bank Overdraft Account Payable Loan from Mr. C

5,000

4,500

2,000

500 1,000

2,000 4,500 500 1,000 5,000

Capital

Capital Increases as additional capital introduced into the business

Capital Increases Rs.100 for profit


Capital Decreases Rs.100 for loss by fire

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