Practice Questions

Q1)Give an accounting equation for the following transactions.

All the transactions are interrelated:
Commenced business with cash Rs.60000.
Paid rent in advance Rs.500
Purchased goods for cash Rs.30000 & credit Rs.20000.
Sold goods for cash Rs.30000 costing Rs.20000
Paid salary Rs.500 and salary outstanding Rs.100
Bought motorcycle for personal use Rs.5000

Accounting Equation.
Q2)Mr.X had the following transactions. Give an accounting
equation for the following:
Commenced business with cash Rs50000.
Purchased Goods for cash Rs.20000 & credit Rs.30000
Sold Goods for cash Rs.40000 costing Rs.30000
Rent paid Rs.100
Rent outstanding Rs.100
Bought furniture Rs.5000 on credit
Bought Refrigerator for personal use Rs.5000
Purchased building for cash Rs.20000.

Continued.
Q3)Use accounting equation to record the following transactions:
Invested Rs.15000 in cash.
Purchased securities for Rs.7500 in cash.
Purchased home for staff for Rs.15000 giving Rs.5000 in cash
and the balance through loan.
Sold securities costing Rs.1000 for Rs.1500
Purchased an old car for Rs.2800 in cash.
Received cash as salary Rs.3600
Paid Rs.500 for loan and Rs.300 for interest.
Paid cash for household expense Rs.300
Received cash for dividend on securities Rs.200.