This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.
ScanSolve AI Answer
Here are the journal entries, necessary ledger accounts, and the trial balance. Journal Entries | Date | Particulars | L.F. | Debit (Rs.) | Credit (Rs.) | | :--- | :---------- | :--- | :---------- | :----------- | | i) | Cash A/c Dr. | | 4,50,000 | | | | To Capital A/c | | | 4,50,000 | | | (Being business started with cash) | | | | | ii) | Office Equipment A/c Dr. | | 50,000 | | | | To Cash A/c | | | 50,000 | | | (Being office equipment purchased) | | | | | iii) | Purchases A/c Dr. | | 50,000 | | | | To Cash A/c | | | 32,000 | | | To Ram A/c | | | 18,000 | | | (Being goods purchased from Ram and partial payment made) | | | | | iv) | Cash A/c Dr. | | 22,000 | | | | Ram A/c Dr. | | 20,000 | | | | To Sales A/c | | | 42,000 | | | (Being goods sold to Ram and partial cash received) | | | | | v) | Salary A/c Dr. | | 32,000 | | | | Rent A/c Dr. | | 8,000 | | | | To Cash A/c | | | 40,000 | | | (Being salary and rent paid) | | | | Necessary Ledger Accounts 1. Cash Account |l|r|l|r| Particulars & Amount (Dr) & Particulars & Amount (Cr) \\ To Capital A/c & 4,50,000 & By Office Equipment A/c & 50,000 \\ To Sales A/c & 22,000 & By Purchases A/c & 32,000 \\ & & By Salary A/c & 32,000 \\ & & By Rent A/c & 8,000 \\ & & By Balance c/d & 3,50,000 \\ Total & 4,72,000 & Total & 4,72,000 \\ To Balance b/d & 3,50,000 & & \\ 2. Capital Account |l|r|l|r| Particulars & Amount (Dr) & Particulars & Amount (Cr) \\ To Balance c/d & 4,50,000 & By Cash A/c & 4,50,000 \\ Total & 4,50,000 & Total & 4,50,000 \\ & & By Balance b/d & 4,50,000 \\ 3. Office Equipment Account |l|r|l|r| Particulars & Amount (Dr) & Particulars & Amount (Cr) \\ To Cash A/c & 50,000 & By Balance c/d & 50,000 \\ Total & 50,000 & Total & 50,000 \\ To Balance b/