Tuesday, August 3, 2010

Accounting Problem

I started a business with Rs. 50,000.
Here transaction is to be considered from the viewpoint of my business, not from my personal viewpoint So, an event changing the financial position of my business will be regarded as a transaction:
1". It is a transaction. It changes the financial position of the business -Cash (asset) increases
by Rs. 50,000 and owner's equity increases by an-equal amount.
•2, It is a transaction. It changes the financial position of my business-Furniture (an asset) increases by Rs. 2,000 and cash (an asset) decreases by an equal amount
It is not a transaction. It does not change the financial position of my business.
It is not a transaction. Mere appointment of a cashier does not change the financial position
of my business.
It is a transaction. It changes the financial position of my business— cash (an asset) decreases
by Rs. 2,000 and.an expense (salary) increases by an equal .amount..
It is a transaction. It changes the financial position of jny business - goods decrease by Rs.
500 and owner's equity also decreases by an equal amount.
It is a transaction. It changes the financial position of my business cash (an asset) decreases
by Rs. 1,000 and owner's equity also decreases by an equal amount.
It is not a transaction. It does not change the financial position of my business.

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