Chapter 5 – Accounting Equations – TS Grewal 2022
Question 12
Raghunath had the following transactions in an accounting year:
(i) Commenced business with cash ₹50,000.
(ii) Paid into bank ₹10,000.
(iii) Purchased goods for cash ₹20,000 and credit ₹30,000.
(iv) Sold goods for cash ₹40,000 costing ₹30,000.
(v) Rent paid ₹500.
(vi) Rent outstanding ₹100.
(vii) Bought furniture ₹5,000 on credit.
(viii) Bought refrigerator for personal use ₹5,000.
(ix) Purchased motorcycle for cash ₹20,000.
Create an accounting equation to show the effect of the above and also show his Balance Sheet.
Solution:
Raghunath had the following transactions in an accounting year
