1. Business started with Cash Rs. 100,000/-, Bank Balance Rs. 150,000/-, Merchandise goods Rs 40,000/-, furniture Rs. 5,000/- & Office equipment Rs. 30,000/-
2. Goods Purchase from ABC Co of Rs. 40,000/- on cash less 15% discount
Cash A/C Dr. 100000
Bank A/C Dr. 150000
Goods A/C Dr. 40000
Furniture A/C Dr. 5000
Office A/C Dr. 30000
To Capital A/C 325000
(Being business started with cash,bank balance,goods,furniture & office equipments)
To calculate the total assets and total liabilities, we need to understand the different types of accounts involved in this scenario.
1. Assets: Assets are items of value owned by a business. In this scenario, the assets include:
- Cash: Rs. 100,000/-
- Bank balance: Rs. 150,000/-
- Merchandise goods: Rs. 40,000/-
- Furniture: Rs. 5,000/-
- Office equipment: Rs. 30,000/-
To calculate the total assets, you need to add up the values of all these assets.
Total assets = Cash + Bank balance + Merchandise goods + Furniture + Office equipment
Total assets = Rs. 100,000 + Rs. 150,000 + Rs. 40,000 + Rs. 5,000 + Rs. 30,000
Total assets = Rs. 325,000/-
2. Liabilities: Liabilities are the debts or obligations of a business. In this scenario, there is no mention of any liabilities.
Now let's move on to the purchase of goods from ABC Co with a cashless discount.
- Goods purchase from ABC Co: Rs. 40,000/-
- Cashless discount: 15%
To calculate the discount amount, you need to multiply the purchase amount by the discount rate.
Discount amount = Goods purchase amount * Discount rate
Discount amount = Rs. 40,000 * (15/100)
Discount amount = Rs. 6,000/-
To calculate the total amount paid after the discount, you need to subtract the discount amount from the purchase amount.
Total amount paid = Goods purchase amount - Discount amount
Total amount paid = Rs. 40,000 - Rs. 6,000
Total amount paid = Rs. 34,000/-
Now you have the necessary information to calculate the updated cash and merchandise goods.
- Updated cash: Cash at the beginning + Total amount paid
Updated cash = Rs. 100,000 + Rs. 34,000
Updated cash = Rs. 134,000/-
- Updated merchandise goods: Existing merchandise goods
Since there is no mention of any change or additional purchase of goods, the merchandise goods will remain the same, which is Rs. 40,000/-.
Therefore, after the purchase from ABC Co with a cashless discount, the updated assets would be:
- Cash: Rs. 134,000/-
- Bank balance: Rs. 150,000/-
- Merchandise goods: Rs. 40,000/-
- Furniture: Rs. 5,000/-
- Office equipment: Rs. 30,000/-
Total assets = Rs. 134,000 + Rs. 150,000 + Rs. 40,000 + Rs. 5,000 + Rs. 30,000
Total assets = Rs. 359,000/-