Answer to Question #310370 in Financial Math for Luffy

Question

Analyse the following transactions for Surprise Ltd. using the concept of Accounting Equation comprising of Assets, Liabilities and Equity 1.Commenced business with cash of ₹ 5,00,000. Purchased equipment for cash ₹ 2,00,000. 3. Purchased furniture worth ₹50,000 on credit from IndiMart. 4. Purchased raw materials for ₹25,000 against cash from XYZ Suppliers. 5. Deposited cash of ₹ 1,25,000 in the current account. 6. Sold goods for ₹75,000 and received a cheque against the same

Answer 1

1. Dr cash a/c 500000

Cr capital a/c. 500000

2. Dr equipment a/c. 200000

Cr cash a/c 200000

3. Dr Furniture a/c 50000

Cr accounts payable a/c 50000

4. Dr raw materials a/c. 25000

Cr cash a/c. 25000

5. Dr cash a/c 125000

Cr current account 125000

6. Dr bank a/c 75000

Cr goods a/c. 75000