26-10-2014 (Financial Accounting 1st semester BBA)

26-10-2014

Accounting Equitation: According to the equitation Assets is equal to Liabilities plus Capital.

Numerical Problems:

Show the effect of following transaction an accounting equitation.

Q.1 Mr. Ahmad

1. Started business with cash rupees 500,000
2. He Purchased building for rupees 200,000
3. He purchased furniture for rupees 30,000
4. He purchased goods for rupees 1,50,000
5. He sold goods costing rupees 60,000 for cash rupees 80,000
6. He purchased goods for rupees 30,000 on credit basis
7. He sold goods costing 50,000 for rupees 70,000 on credit basis
8. Creditor was paid for rupees 30,000
9. Cash received from the debtor rupees 40,000
10. Goods costing 25,000 lost by fire
11. He paid salaries and telephone bill rupees 7000
12. He boarded money from the bank as loan for rupees 50,000

 

M/S Mr. Ahmad
Assets = Liabilities + Capital
Assets						Liabilities		Capital
Cash + Building + Furniture + Goods + Debtor						Creditor + Bank Loan
Cash	Building	Furniture	Goods		Debtor
500,000								500,000
500,000 - 200,00 300,000	200,000							500,000
300,000 - 30,000 2,70,000		30,000						500,000
270,000 -1,50,000 1,20,000			1,0,000					500,000
120,000 +80,000 200,000			150,000 -60,000 90,000					500,000 +20,000 5,20,000
			90,000 +30,000 120,000			30,000		520,000
			120,000 -50,000 70,000		70,000			520,000 +20,000 540,000
200,000 -30,000 170,000						30,000 -30,000 0
170,000 +40,000 210,000					70,000 -40,000 30,000
			70,000 -25,000 45,000					540,000 -25,000 515,000
210,000 -7000 203,000								515,000 -7000 508,000
203,000 +50,000 253,000							50,000	508,000
253,000+200,000+30,000+45,000+30,000				50,000+508,000
558,000				558.,000