On September 1, 20XX, Sukriti Sood set up Skin Glow as a sole proprietorship. The business engaged in the following transactions in the first month

(a) Sood invested Rs10,000 cash in the business. 

(b) Took a bank loan, Rs 30,000. 

(c) Bought equipment for cash hs 25,000 . 

(d) Provided services for cash, hs 12,000. 

(e) Paid interest on the bank loan, Rs 300 . 

(f) Bought supplies for cash, Rs 1,000. 

(g) Paid rent, hs 3,100. 

(h) Paid Interest, Rs 200.

 (i) Paid salaries, Rs 5,000.

 Required:

 Analyse the effect of the transactions on the related asset, liability and equity items.

 Who sets accounting standard in India? Why is historical cost still used in many countries.  

Explain and illustrate Dupont Analysis?

Answer rating: 100% (QA)

Analysis of the Effect of Transactions on Related Asset Liability and Equity Items a Sood invested Rs10000 cash in the business This would increase the Cash asset by Rs10000 There would be no effect o... View the full answer