Accounting Equation Numericals Examples and Solutions

Accounting Equation - Numericals On April 1, Julie Spengel established Spengel s Travel Agency. The following transactions were completed during the month. 1. Invested Rs.15,000 cash to start the agency. 2. Paid Rs.600 cash for April offi ce rent. 3. Purchased equipment for Rs.3,000 cash. 4. Incurred Rs.700 of advertising costs in the Chicago Tribune, on account. 5. Paid Rs.900 cash for office supplies. 6. Performed services worth Rs.10,000; Rs.3,000 cash is received from customers, and the balance of Rs.7,000 is billed to customers on account. 7. Withdrew Rs.600 cash for personal use. 8. Paid Chicago Tribune Rs.500 of the amount due in transaction (4). 9. Paid employees salaries Rs.2,500. 10. Received Rs.4,000 in cash from customers who have previously been billed in transaction(6). Instruction: Solve Accounting Equation

Accounting Equation - Numericals M/s. HP Private Limited provides you the following data: Business received a money of .2,000 as Capital and paid it into his business bank account. Stock is purchased on credit from ABC & Co. for .800. A business computer is purchased for .5,000 financed by a loan from a friend. Trade debts amounting to .750 are collected from customers. Stock costing .1,000 is sold for .1,400 cash. ABC & Co. are paid .220. Stock is purchased for .350 cash. Goods costing .1,000 are sold on credit to XYZ Ltd for .2,500. A filing cabinet is purchased for .60 by increasing an existing bank overdraft. Required: Prove the accounting equation for the above transactions.

Accounting Equation - Numericals Falske Computer Timeshare Company entered into the following transactions during May 2017. 1. Purchased computers for Rs.20,000 from Digital Equipment on account. 2. Paid Rs.4,000 cash for May rent on storage space. 3. Received Rs.17,000 cash from customers for contracts billed in April. 4. Performed computer services for Viking Construction Company for Rs.4,000 cash. 5. Paid Tri-State Power Co. Rs.11,000 cash for energy usage in May. 6. Falske invested an additional Rs.29,000 in the business. 7. Paid Digital Equipment for the computers purchased in (1) above. 8. Incurred advertising expense for May of Rs.1,200 on account. Instruction: Solve Accounting Equation

Accounting Equation - Numericals Show that the accounting equation is satisfied after taking into consideration each of the following transactions in the books of Apple Ltd. Started business with Rs. 50,00,000 (Rs. 10,00,000 in cash and balance in stock in trade) Opened bank account Rs. 5,00,000 Bought goods for cash Rs. 12,000 Bought goods on credit from Future Group Rs. 2,00,000 Sold goods for Rs. 45,000 Paid by cheque Rs. 1,45,000 to Future Group

Accounting Equation - Numericals Prove the accounting equation: Opening Balance: Cash Rs. 100,000, Debtors Rs. 12,000, Building Rs. 500,000, Creditors Rs. 10,000 & Outstanding salary Rs. 3,000 Opened bank account Rs. 25,000 Building purchased for Rs. 100,000 [by cash 2,000 & rest by cheque] Paid creditors Rs. 6,000 Received cheque from debtors Rs. 7,000 Outstanding salary was paid in full Loan taken from IDBI Bank Rs. 10,000

Accounting Equation - Numericals Mark Taylor started her own consulting firm, Matrix Consulting, on May 1, 2017. The following transactions occurred during the month of May. May 1 Taylor invested Rs.7,000 cash in the business. 17 Paid Rs.2,500 for employee salaries. 2 Paid Rs.900 for office rent for the month. 20 Paid for the supplies purchased on account on 3 Purchased Rs.600 of supplies on account. May 3. 5 Paid Rs.125 to advertise in the Times of India. 23 Received a cash payment of Rs.4,000 for services 9 Received Rs.4,000 cash for services performed. performed on account on May 15. 12 Withdrew Rs.1,000 cash for personal use. 26 Borrowed Rs.5,000 from the bank on a note 15 Performed Rs.5,400 of services on account. payable. 29 Purchased equipment for Rs.4,200 on account. 30 Paid Rs.275 for office utilities. Instruction: Solve Accounting Equation