Mgt101 GDB Solution
Wednesday, April 20, 2011 Posted In MGT Edit ThisGDB MGT 101 Cash+ Debtors + Stock + Building + Furniture + Other Fixed Assets = Creditors +Owner’s Equity Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 5,000 7,500 15,500 75,000 3,500 18,500 50,000 75,000
On the same day, he borrowed Rs. 30,000 from his wife and brought that money into the business. You are required to show the effect of this transaction upon the above equation by following the format.”
Solution: Rs 30,000 Cash borrowed so cash and creditors will be increased by 30,000 and the accounting equation becomes.
Cash+ Debtors + Stock + Building + Furniture + Other Fixed Assets = Creditors + Owner’s Equity Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 5,000 7,500 15,500 75,000 3,500 18,500 50,000 75,000
+ +
30000 30000
Cash+ Debtors + Stock + Building + Furniture + Other Fixed Assets = Creditors + Owner’s Equity Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 35,000 7,500 15,500 75,000 3,500 18,500 85,000 75,000
