Practice Question Accounting Equation

QUESTION - 1
State with reasons whether the following events are transactions or not to M
. r M (Proprietor):

1) Mr. M started business with capital (brought in cash) Rs. 40,000.

2) Paid salaries to staff Rs. 5,000.
3) Purchased m.1chinery for Rs. 20,000 in cash.
4) Placed an ore er with Sen & Co. for goods for Rs. 5,000.
5) Opened a bank account by depositing Rs. 4,000.
6) Received pass book from bartk.
7) Appointed Mr. B as a manager on a salary of Rs. 4,000 per month.
8) Received interest from bank Rs. 500.
9) Received a price list from Mr. B.

QUESTION - 2
1) Mr. Ahmed start the business and invests a sum ofRs.60,000
2) He purchased furniture for Rs.6,000
3) He purchased goods on credit for Rs.14,000
4) He sold goods for cash Rs 12,000
5) Cash paid to the creditors Rs.6,000
6) Cash paid for office rent Rs.4,000
7) Salary Rs.4,000 remains outstanding
8) Goods costing Rs.2,000 are sold for cash Rs.3,000
9) Withdrew cash for personal use Rs.10,000

Required: Analyze the above transactions by using the accounting equation: Assets =
Liabilities+ Capital

QUESTION - 3
1) Mr. Ahmed starts the business and invests a sum of Rs.60,000
2) He purchased furniture for Rs.6,000
3) He purchased goods on credit for Rs.14,000
4) He sold goods for cash Rs.12,000
5) Cash paid to the creditors Rs.6,000
6) Cash paid for office rent Rs.4,000
7) Salary Rs.4,000 remains outstanding
8) Goods costing Rs.2,000 are sold for cash Rs.3,000
9) Withdrew cash for personal use Rs.10,000
Required: Analyze the above transactions by using the accounting equation: Assets =Liabilities+ Capital

QUESTION-4
From the following transactions, state the nature of accounts and state which account be debited and which account
will be credit and pass journal entries according top form of General-Journal.
1. Mr. A started business with Rs. 50,000 in cash.
2. Purchased goods for cash Rs. 10,000.
3. Sold goods for cash Rs. 15,000
4. Purchased goods from Mr.D for cash Rs. 5,000.
5. Sold goods to Mr. B for Rs. 6,000.
6. Purchased furniture for Rs. 4,000.
7. Purchased plant for Rs. 10,000.
8. Paid wages Rs. 400.