Accounting Equation
1. Started business with capital 1,00,000.
Assets
1,00,000(cash)
= Capital + Liabilities
= 1,00,000 + 0
2. Bought Furniture 25,000.
Assets
= Capital + Liabilities
75,000(cash)+ = 1,00,000 + 0
25,000(furniture)
3. Bought goods for cash 20,000.
Assets
55000(cash)+
25,000(furniture)+
20000(Goods)
= Capital + Liabilities
= 1,00,000 + 0
4.Bought Goods from Ram on Credit 5000
Assets
=
Capital + Liabilities
55000(cash)+
25,000(furniture)+ = 1,00,000 + 5000(Ram)
25000(Goods)
5.Sold goods for cash for 15000.
Assets
= Capital + Liabilities
70000(cash)+
25,000(furniture)+ = 1,00,000 + 5000(Ram)
10000(Goods)
6. Sold goods to Shyam on credit 8000.
Assets
= Capital + Liabilities
70000(cash)+
25,000(furniture)+ = 1,00,000 + 5000(Ram)
2000(Goods)+
8000(Shyam)
7.Paid cash to Ram 4000
Assets
= Capital + Liabilities
66000(cash)+
25,000(furniture)+ = 1,00,000 + 1000(Ram)
2000(Goods)+
8000(Shyam)
8. Received cash from Shyam 5000
Assets
= Capital + Liabilities
71000(cash)+
25,000(furniture)+ = 1,00,000 + 1000(Ram)
2000(Goods)+
3000(Shyam)
9.Paid Cash into Bank 25000
Assets
= Capital + Liabilities
46000(cash)+
25,000(furniture)+ = 1,00,000 + 1000(Ram)
2000(Goods)+
3000(Shyam)+
25000(Banks)
10.Withdraw from bank 10000
Assets
= Capital + Liabilities
56000(cash)+
25,000(furniture)+ = 1,00,000 + 1000(Ram)
2000(Goods)+
3000(Shyam)+
15000(Banks)