A.Dinesh starts business with cash Rs 50,000 and furniture Rs 20,000. The details of his transactions are given below:

(i) Purchased goods on credit from Eknath Rs 60,000 at 10% discount.

(ii) Goods costing Rs 20,000 are sold for Rs 35,000.

(iii) Goods costing Rs 10,000 are sold to Fakir & Co. for Rs 18,000.

(iv) Fakir returned 1/5th of the goods.

(v) Received commission Rs 6,000.

(vi) Paid Rs 14,000 to Eknath and accepted a Bills Payable of 3 months for the balance amount.

(vii) Paid salary Rs 3,000 to Gumasta.

(viii) Depreciate furniture by 10%.

You are required to prepare accounting equations for Dinesh.

B Gopinath started business with cash Rs 30,000 and goods Rs 10,000. His other transactions are given below. You are required to show the accounting equations.

(i) Purchased goods from Hanuman Bhai Rs 30,000.

(ii) Paid Rs 10,000 to Hanuman Bhai.

(iii) Sold goods costing Rs 12,000 for Rs 19,000 to Inderjeet & Co.

(iv) Goods costing Rs 3,000 are destroyed during cyclone and could be sold for Rs 1,000 only.

(v) Paid wages Rs 1,000.

(vi) Goods costing Rs 1,000 are distributed as relief during the cyclone.

(vii) Goods costing Rs 400 (market price Rs 500) are taken for household use.

(viii) Goods costing Rs 3,000 are used for construction of a room.

(ix) Goods costing Rs 5,000 are sold for Rs 20,000.

(x) Goods worth Rs 2,000 are destroyed in fire.

C. What do you mean by accounting cycle ?

D. What is a voucher ? What are the features of a voucher ? How a voucher is prepared ?

E. What do you mean by source document ? Give examples.

Answer rating: 100% (QA)

Lets start by preparing accounting equations for Dinesh and B Gopinaths transactions For Dinesh 1 Assets Liabilities Owners Equity Initial situation C... View the full answer