Answer to Question #182557 in Accounting for devil

Question

1. Discuss and analyze the following transactions for X Ltd, using the concept of accounting equation (Assets, Liabilities and Equities). 1. Purchased Furniture for Rs675000 2. Capital Introduced by the business Owner by depositing 12 Lakhs in the bank account 3. Goods purchased on credit from Aman Enterprises for Rs105000

Answer 1

Assets= Liabilities +Equity

Assets include

Purchased furniture= Rs 675,000

Goods sold on credit=Rs 400,000

Goods sold=Rs 300,000

Purchased goods from Sneha=Rs 600,000

Total Assets=Rs 1,975,000

Equity

Cash introduced by owners 12 lakhs which is Rs 1,200,000

Liabilities

Goods purchased on Credit=Rs 105,000

Rs 1,975,000 is more than Rs 1,200,000+Rs 105,000

Company X ltd has already hit the break even point and is making profit