Show the accounting equations on the basis of the following transactions. (i) D, Mahapatra commenced business with cash & 50,000. Purchased goods for cash % 8,000, Sold goods costing & 6,000 for € 9.000. Purchased furniture % 20,000, Took a loan of & 10,000 from bank. Paid salary & 4,000 and insurance & 2,000, (vii) Received rent % 3,000 and interest 1,500. (viii) Paid ® 800 as premium of life insurance policy. (ix) Purchased a bicycle for the owners” son % 1,200, (x) Depreciate furniture by % 300. ‘Accourng Equation Total Ast = Taal Listes OR Total Assets = Captal+ Uabities OF Toa Assets Lables = Capa (9D Aahapaita commenced business with cash € 50 000 Here business i geting € 50.000 he orm of each ard owes Mabagaa $2,000. Therlr, nthe orm ot accountng equation tcanbe shown as tohows deat - abaties - Capital ‘cash so000 - ° . 50.00 (i) Purchased goods for ash t 4000 Here sock othe business wile creases by € 8,000 and each wl be rducedby€ 8,00, Thereor, the naw aquton wb ose - Uabatios . Capital cash 42000 - ° = 42000 ‘Stock 8000 2 : 50,000 (i) Sot ond cotig¢ 6 20 ¢ 980, ook be rduced by € L000 and cach wibe incensed by & 9.00, Capital wi be inereased by € 2.000 prof 9.0002 6.00), The new austin willbe esas - abies : Capital Cash 51.000 = @ - 51,000 ‘Stock 2.00 - e . 2000 ‘53000 e 53.000 (te) Purchased turnture¢ 20,000 Here cash wil be rious by € 20,000 an furtive wl appear n the equation as an asset The ew eaten willbe esas ~ spines : Capital cash 31000 - ° - 31,900 ‘Stock 2000 - e . 2000 Fumie 20000 - ° : 20000 53000 - e . 53.00{V) Took loan of 10000 from bank Here cach wi be creased ty 10000 and lables inthe orm ot an wl be reas ty he eam amount. Theelore, he new equation wil be: Assets ‘41000 200 20000 {yi) Paid salary ¢ 4,00 and insurance ¢ 2,000, Here cash wie reduce by ® 6 00 ad pot wi be reduced by € 6.00, capt wb reduced by € 6,000. The new equation wl be cash ‘Steck Furnture esate 35000 2000 20000 57.000 (ui) Recoived ron 000 and interest ¢ 1,500 Here cash wi be increased by & 4500 and capita lb incensed by he sare amour inthe ior of prt Ther, the raw equation willbe cash Steck Furntue Assels 39500 2000 20.000 500 (vil) Paid ¢ 000 2 premium of te insurance policy Here cash wi be reduce ty € 800 and capal wl be reduced by € 800 by way of eawing, Therefore. the new equaton wa be Cash Steck Furntue (Purchased bicycle forthe owner's son ¢ 1,200 Assets 38700 2.000 20.000 700, nbates oan 10.000, abies oan 10,000, ° @ 30000 abies Loan 10.080 e 000 Capit ‘31,000 2000 20.000 Capital 25.000 2000 20.00 37,00 Capital 70500 2000 20000 51500 cae ano 2000 Er on Here cash wi be reduced iy & 1.200 are capital wil be reduced by & 1,200 by way of drawing Theeloe, the new equation willbe cash Steck Fumue (2) Deprecite furniture by © 300 ‘Assets “37500 2000 20.000 59500 10.000 Here urntue willbe reduced by€ 300 and cota wilbe reduce by € 300 byway loss cue ta deprecation Ther, the rewequaton wit be: bites Cash Stock Furntue ‘Assels 37500 2.000 19700 59.200 Capa 7500 200 19,70 20