MGT101 GDB solution 20 april 2011

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Solution: Rs 30,000 Cash borrowed so cash and creditors will be increased by 30,000 and the accounting equation becomes.

Cash + Debtors + Stock + Building + Furniture + Other Fixed Assets = Creditors + Owner’s Equity
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
5,000 7,500 15,500 75,000 3,500 18,500 50,000 75,000
+
+
30000 30000

Cash + Debtors + Stock + Building + Furniture + Other Fixed Assets = Creditors + Owner’s Equity
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
35,000 7,500 15,500 75,000 3,500 18,500 85,000 75,000