A business entity entered into the following transactions during the month of May 2023.

May 1 : Loan raised from Canara Bank for business for Rs.3,00,000
May 1:Equity /self capital invested 2,00,000
May 2: Building bought as office premises for Rs. 1,00,000 for cash
May 6 :Machinery bought for Rs.50,000 in cash
May 8:Bought two computers on credit by taking a bank loan of Rs 80,000
May 10 ; Incurred raw material charges for Rs.50,000.Paid in cash
May 20Sales to customers for Rs. 1,00,000 ;Received 80,000 as cash;the customer has pr
May 21: Incurred advertising expense of Rs 10,000. 6,000 paid in cash, remaining yet to be
May 25: Received interest of Rs 500 on amount held in bank account
May 26: Customer Paid the balance amount due
May 28: Customer returns goods worth Rs 5,000
May 30: Depreciation of Rs 1000 is charged on Machinery

Suppose on May 26th.

The customer pays only 10,000 and says that he is unable to pay the balance

Suppose on May 26th.

The customer pays 19,000 .He is given a discount of Rs 1,000
month of May 2023.

ash;the customer has promised to pay the balance in a few days

ash, remaining yet to be paid

300000
200000

he balance
300000
100000
100000
TRANSTRANSACTION EFFECT 1-ASSET AMOUNT
May 1 :
Loan raised from Canara Bank for business for Rs.3,00,000 INC IN CASH 300000
May 1 :
:Equity /self capital invested 2,00,000 INC IN CASH 200000
May 2:
Building bought as office premises for Rs. 1,00,000 for cash BUILDING 100000

DEC IN CASH -100000

May 6 :
Machinery bought for Rs.50,000 in cash INC IN MACH 50000

DEC IN CASH -50000

May 8:
Bought two computers on credit by taking a bank loan of Rs INC IN COMPUTERS 80000
May 10 ;
Incurred raw material charges for Rs.50,000.Paid in cash DEC IN CASH -50000
May 20:
Sales to customers for Rs. 1,00,000 ;Received 80,000 as cas INC IN CASH 80000

INC IN DEBTORS 20000

May 21:
Incurred advertising expense of Rs 10,000. Paid in cash DEC IN CASH -10000
May 25:
Received interest of Rs 500 on amount held in bank account INC IN CASH 500
May 26:
Customer Paid the balance amount due DEC IN DEBTORS -20000

INC IN CASH 20000

May 28:
Customer returns goods worth Rs 5,000 DEC IN CASH -5000
May 30:
Depreciation of Rs 1000 is charged on Machinery DEC IN MACH -1000

614500

ASSET = LIABILITY+EQUITY/CAPITAL ASSET

INC OME-INC IN PROFIT- INC IN LIABILITY LIBAILITY
EXPENSE-DEC IN PROFIT -DEC IN LIABILITY INC
EXP
ASSETS AND EXPENSE - DEBIT EQUITY
INCOMES,LIABILITIES AND EQUITY-CREDIT
EXPENSE
PROFIT 100000 REVENUES
LESS:SALES RET
PURCHASES-EXPENSE 50000
DEC IN PROFIT 50000

ADVT-EXP 10000
DEC IN PROFIT 10000

INC IN PRIFT 500 INTEREST

SALES RETURNS-EXPENSE/LOSS/REDN IN SALES 5000

DEC IN PROFIT 5000

DEPRECIATION-EXPENSE 1000
DEC IN PROFIT 1000

INC OME-INC IN PROFIT- INC IN LIABILITY

EXPENSE-DEC IN PROFIT -DEC IN LIABILITY CATEGORY
PURCHASES/RAW

PROFITS- EQUITY SHAREHOLDER

ALL ?

PROFIT 10,000

EQUITY -OWNER LTD

CEO,BOD BEST INTEREST OF THE SHAREHOLDER

10000

MPS WEALTH FOR EQUITY

EFFECT 2-LIABILITY AMOUNT

INC IN LOAN 300000

INC IN EQUITY 200000

INC IN COMPUTER 80000

DEC IN PROFIT -50000

INC IN PROFIT 100000

DEC IN PROFIT -10000

INC IN PROFIT 500

DEC IN PROFIT -5000

DEC IN PROFIT -1000

614500
 INCOME
100000
5000
95000

500

RECURRING - CATEGORY
REDN IN VALUE OF ASSET

MODE
50000 DEC IN CASH

CASH
EQUITY
LOAN INT

SHAREHOLDER

10%

LTH FOR EQUITY

ASSET LIABILITIES
LAND I OWE SOMEONE
BILIDNG LOAN LONG TERM
PATENT'CASH CREDITORS SHORT TERM LIBAILITIES
C STK
DEBTORS
CUSTIOMER PROMISES TO PAY ME

EQUITY
MONEY THAT THE PERSON WHO STARTED THE BUSINESS INVESTS IN THE BUSINESS
MONEY OF THE OWNER OF THE BUSINESS

NARAYANA MURTHY -INFOSYS

X - MONEY
LOAN 10,000 10%
EQUITY 10,000 NO INTERE

SHARE OF PROFITS OF THE COMPANY

GIVE ME OWNERSHIP RIGHTS

10000 50000
10000 60000

ASSET LIABILITIES EQUITY

MONEY THAT THE OWN
I OWE SOMEONE ELSE
NO GUARANTEE THAT H
LT-LOAN NO INTEREST
ST- CREDITOR (MONEY THAT I OWE TO SUPPLIERS)
PROFITS
OWNERSHIO RIGHTS

INCOME EXPENSE
ANY AMOUNT THAT YOU PAY ON A REGULAR BASIS TO KEEP THE BUSINESS RUNNING
IN RETURN FOR AN EXPENSE I NORMALLY GET A SER
CATEGORY
REVENUES SALE OF MY FG DIFFERENT FROM THE OUTFLOW
INTEREST RECD
RENT CATEGORY

SALARY CASH
RENT
 INSURANCE

INCOME EXPENSE
CATEGORY CATEGORIES

ASSET LIABILITIES EQUITY INCOME

TANGILE/INTANGIBLE LOAN OWNER BUSINESS CATEGORY
CREDITORS

CASH
CLSOING STOCK
DEBTORS

RENT CASH
 CREDITORS
LONG TERM I MAKE A PROMISE TO PAY MY SUPPLIERS IN 2 MONTHS TIME
SHORT TERM LIBAILITIES

TS IN THE BUSINESS

50,000 5

5 YEARS -PRICNIPAL
NO REPAYMENT OF PRINCIPAL

E COMPANY

0.2
0.166667

MONEY THAT THE OWNER OF THE BUSINESS INVESTS IN THE BUSINESS

NO GUARANTEE THAT HE WILL GET IT BACK

NO INTEREST

OWNERSHIO RIGHTS

HE BUSINESS RUNNING
SE I NORMALLY GET A SERVICE/BENEFIT
EXPENSE
CATEGORIES- BENEFIT
ASSETS
LONG TERM ASSETS
SEEN,FELT,TANGIBLE/INTANGIBLE LAND,BUILDING,MACH,COMPUTER,CAR, TANGIBLE/FIXED ASSETS
ECONOMIC VALUE - GENERATE REVENUES PATENT,COPYRIGHTS,TRADEMARK INTANGIBLE ASSETS
REMAIN IN CURRENT FORM FOR MORE THAN A YEAR

SHORT TERM ASSETS

CASH

ANYTHING THAT CAN BE CONVERTED INTO CASH IN THE SHORT TERM -ST ASSET

CLOSING STOCK FINISHED GOODS LYING THE WAREHOUSE 100000 SHAPMOOS

RAW MATERIALS
WIP -WORK IN PROGRESS -SEMI FG

DEBTORS PROMISES TO PAY ME THE MONEY IN 2 MONTHS TIME

ASSETS
LONG TERM SHORT TERM
TANGIBLE/FIXED CASH
INTANGIBLE CLSOING STOCK
DEBTORS

Sales to customers for Rs. 1,00,000 ;Received 80,000 as cash;the customer has promised to pay the balance in a few

INCOME CATEGORY
100,000 REVENUE INCOME
80000 CASH ASSET
20000 DEBTORS ASSET

Incurred raw material charges for Rs.50,000.Paid in cash

EXPENSE?
ASSET CLOSING - RAW MATERIAL

ACCOUNTING PERIOD CONCEPT

31ST MARCH - QTY OF RAW MATERIAL WAREHOUSE - CLOSING STOCK
EXCESS QTY OF MATERIAL

100000
50000 60000 10000 CLSOING STOCK
SALES FINISHED GOODS
 TANGIBLE/FIXED ASSETS
INTANGIBLE ASSETS

SHAPMOOS X
PROMISE TO PAY

sed to pay the balance in a few days