Prepare accounting equation from the following information...

Prepare Accounting Equation from the following Information: Rs. (1) Started business with cash 2,00,000 (2) Goods Purchased 40,000 (3) Goods Purchased from Mohan 30,000 (4) Rent paid 10,000 (5) Received commission 12,000 (6) Furniture purchased from Best Furniture House 14,000 (7) Withdrew for personal use 10,000 (8) Amount paid to creditors 13,000 (9) Goods costing 10,000 sold at a profit of 20% (10) Goods costing 20,000 sold at a profit of 25% to Mohit (11) Received from Debtors 15,000 (12) Amount deposited in bank 12,000 (13) Computer purchased for personal use 18,000

Transcript

00:01 In this question we are given with 13 transactions and we are asked to prepare the accounting equation.

00:14 Accounting equation is nothing but assets equal to liabilities plus equity.

00:28 Transaction 1, started business with cash 2 lakh.

00:41 So, this will increases the value of cash and capital.

00:46 So, in the accounting equation it will be reflected as asset gets increased equal to liabilities no effect and it will increases the value of equity.

01:00 Equity gets increased.

01:03 Second, goods purchased dollar sorry 40 ,000 rupees.

01:12 So, here inventory which is goods.

01:15 So, inventory gets increased and purchases.

01:19 So, purchases will decreases the value of purchases increased and so it will reduce the cash.

01:28 So, in the accounting equation assets equal to liabilities plus equity.

01:35 So, here cash gets decreased and inventory get increased.

01:47 Third transaction goods purchased again they are purchasing goods from mohan for 30 ,000.

01:57 So, here also inventory gets increased and purchases increases and so it decreases the value of cash.

02:12 So, in the accounting equation assets equal to liabilities plus equity.

02:22 Here inventory increases cash decreases.

02:28 Fourth one rent paid rupees 10 ,000.

02:38 Here rent is an expense, expenses increases equity decreases and it is paid in the form of cash.

02:48 So, cash decreases asset decreases.

02:52 So, in the accounting equation assets equal to liabilities plus equity, asset cash gets decreased and liabilities will be 0 and equity rent expenses gets increases.

03:12 Five commission received rupees 12 ,000.

03:28 Here cash is coming in.

03:31 So, asset increases and commission received is a revenue, revenue increases.

03:46 So, equity also increases.

03:49 So, asset equal to liabilities plus equity.

03:57 So, cash increases liability and revenue, commission revenue increases.

04:05 Sixth one purchased furniture for 14 ,000.

04:18 So, here furniture which is furniture is an asset and it is increases.

04:23 So, asset get increased and cash get decreased.

04:28 So, it will affect only the asset side.

04:36 Furniture increases and cash is increased sorry cash gets decreased.

04:48 Seventh one withdrew cash for personal use rupees how much 10 ,000...