Question

Prepare Accounting Equations, Journal, Ledgers and Trial Balance

I. X Started business with cash Rs. 1,00,000 Bank Rs. 1,50,000

II. Purchased Building Rs. 50,000

III. Purchased machinery Rs. 50,000.

IV. Purchased goods from Prakash Rs. 30,000 and on cash Rs. 70,000.

V. Sold goods worth Rs. 50,000 at Rs. 75,000

VI. Paid rent Rs. 5,000.

VII. Pain salary Rs. 20,000.

VIII. Received interest Rs. 25,000.

IX. Sold goods on credit to Mahesh for Rs. 50,000

X. Paid to Prakash Rs. 10,000.

XI. Building taken by the owner for Rs. 20,000

XII. Paid telephone bill Rs. 3500.

Answer 1

Accounting Equations, (showing Journal and Ledger):
S. No.	Assets					=	Liabilities+	SH Equity	Income	Expenses
	Cash+	AR+	Inventory+	Machinery+	Building	=	AP+
1	250000					=		250000
2	-50000				50000	=
3	-50000			50000		=
4	-70000		100000			=	30000
5	75000		-50000			=			75000	-50000
6	-5000					=				-5000
7	-20000					=				-20000
8	25000					=			25000
9		50000				=			50000
10	-10000					=	-10000
11	20000				-50000	=				-30000
12	-3500					=				-3500
Total	161500	50000	50000	50000	0	=	20000	250000	150000	-108500
					311500	=	311500

Trial Balance:
Accounts Titles	Debit $	Credit$
Cash	161500
AR	50000
Machinery	50000
Inventory	50000
AP		20000
Capital		250000
RE		41500
Total	311500	311500