Answer to Question #182802 in Accounting for hemangi

Question

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 4. Goods sold on credit for Rs 400000. The cost of the goods sold was Rs 300000 5. Purchased goods from Sneha Enterprises for Rs 600000 and made the payment from the business’s bank account   

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