Question

Show the effect of the following transactions and also prepare a Blacance Sheet :
(i) Started business with ₹60,000.
(ii) Rent recevied ₹2,000.
(iii) Accrued interest ₹500.
(iv) Commission received in advance ₹ 1,000.
(v) Amount withdrawn ₹5,000.

Answer 1

Correct Answer - Assets: Cash ₹58,000 + Accrued interest ₹ 500 = Liabilites : Commission Recevied in Adavnce ₹ 1,000 + Capital : ₹ 57,500.
Capital = Opening Capital ₹ 60,000 + Rent Received ₹ 2,000 + Accrued Interest ₹ 500 - Drawing ₹ 5,000 = ₹57,500.