Hello friends, welcome to the another lecture of accounting
equation, we will increase the discussion, we will talk a
little more, what is the effect of some more transactions,
as it is equal to liability plus capital, we will see this
on the accounting equation and we will go today, write
another example, another example, another example, ok sir,
show the effect of following transactions, show the effect
of following transactions, show the effect of following
transactions,
show the effect of following transactions, show the effect
of following transactions, show the effect of following
transactions, show the effect of following transactions,
show the effect of following transactions, show the effect
of following transactions, show the effect of following
transactions, show the effect of following transactions,
show the effect of following transactions, show the effect
of following transactions, show the effect of following
transactions, show the effect of
transactions,
show the effect of following transactions, show the effect
of following transactions,
show the effect of following transactions, show the effect
of following transactions, show the effect of following
transactions, show the effect of following transactions,
show the effect of following transactions, show the effect
of following transactions, show the effect of following
transactions, show the effect of following transactions,
show the effect of following transactions, show the effect
of following transactions, show the effect of following
transactions, show the effect of
transactions, show the effect of following transactions,
show the effect of following transactions, show the effect
of following transactions, show the effect of following
transactions, show the effect of following transactions,
show the effect of following transactions, show the effect
of following transactions, show the effect of following
transactions, show the effect of following transactions,
show the effect of following transactions, show the effect
of following transactions, show the
of following transactions, show the effect of following
transactions, show the effect of following transactions,
show the effect of following transactions, show the effect
of following transactions, show the effect of following
transactions, show the effect of following transactions,
show the effect of following transactions, show the effect
of following transactions, show the effect of following
transactions, show the effect of following transactions,
show the effect of following transactions,
the effect of following transactions, show the effect of
following transactions, show the effect of following
transactions, show the effect of following transactions,
show the effect of following transactions, show the effect
of following transactions, show the effect of following
transactions, show the effect of following transactions,
I am a foreigner, I have come for the first time. This
point is telling you to treat me.
Investment in shares, you have bought shares of 50,000
rupees, you have made an investment
You have bought shares of 50,000, so friends, it is a
simple thing, it is a simple thing, no nonsense, the pride
is clear 50,000 rupees will be reduced from here, the cash
will be left for 80,000, yes sir, the cash will be left for
80,000
So on the third point, we will minus 50,000 and my cash
will be left for 80,000 and what will be the second effect
You have bought shares, you have bought shares, give one
hand, take one hand, what will be the two effects
Money will go and shares will come, you have sold the
money, you are also calling the shares
Oh, okay sir, okay, let's call the shares too, shares means
investment, we have a new asset
Bring a garland, bring a garland, bring a garland, my new
asset has come, how much is it, friends, 50,000
And this investment has been of 50, no effect on liability,
no effect on capital
Capital is affected by expenses and income, not by assets
It is affected by expenses and income, not by assets
Okay, okay, yes sir, friends, this investment is an asset,
so it has no effect on capital
On this investment, when we earn dividends on these shares,
then we will increase the capital
Dividend means capital will increase by earning, investment
means no effect on it
So here too, 80 added up to 50, 1,30,000 and here too, 0
added up to 1,30,000 means 1,30,000 1,30,000, okay sir,
let's move on
Received dividend 5,000, here your wish has been fulfilled
Dividend came 5,000, see friends, what is a dividend, I
would like to tell you first
You bought a share of a company, why do you buy a share of
a company, what is the purpose of buying a share of a
company
That when that company will earn profit, then it will give
you a share and go
Dividend means only this, the profits that the company has
earned, the profits are distributed to the shareholders who
had given money to the company
To do business, if you have bought a share of a company,
then it means that you have given money to the company to
do business with this money
And the profit earned, we will also get a share from it
So you gave 50,000 rupees to the company to do business,
now the company has earned some profit
So in that 50,000 you will also get your share, yes, how
much is being made, 5,000
The company has given it to you, it has given it to you
with honesty
So your cash will increase, the effect of the fourth
transaction will be that the cash will increase by 5,000
No effect on investment
The share is still 50, which you have bought, you have not
bought a share separately that it will increase
Some profit has been made on those 50,000 separately, so it
will be added to the capital on this side
5,000 will be added to the capital on this side, ok ok
And finally my cash will be 85,000
Plus my investment is 50,000
The total on this side is 1,35,000
Is equal to liabilities plus capital 135
So the total on both sides is equal, 85 plus 50, 135 is
equal to 135
The total on both sides is equal, 135, 135
Ok sir, that's very much fine
Next point
Purchase goods on credit from Deepika
I have bought goods worth 35,000 from Deepika, that is also
a loan, I have not even given the money
You will recognize, brother, when I gave you a loan from
Deepika, you kept this a secret from me till today
You have not told me this till today, it is wrong, friends,
it is wrong
You should have told that sir, I know Deepika Padukone, sir
Deepika Padukone gives us goods on loan
You didn't tell me, no problem, next time be careful, don't
hide such big things from me
Ok sir, sure
Otherwise I will get angry, ok sir, ok, I will tell you
I have bought goods on loan, so what will happen?
The goods came, but the money did not go
So what if the money did not go, the loan also came
Not today, tomorrow I have to pay, I have not got the loan,
tomorrow I have to pay
So what will happen? A new asset will be born
Today, right now, a new asset will be born in this lane,
stock
Stock, from how much money?
How much did you buy, brother? 35000
35000, 35000
So what will happen? What will happen?
Here, at the fifth point, we will write here, a new asset
of 35000
Call it stock, call it goods, one thing
On my cash, on investment, there is no effect of the fifth
point
Liabilities will be born
Today a liability is being born, a creditor whose name is
Deepika
Deepika, Deepika, how much? 35000
Come brother, come brother, come, loading, loading,
loading, how much time will it take, come brother, come
brother, come
Till date there was no liability of the name Deepika, there
was zero
Now suddenly, the liability of 35000 is coming in Deepika
We will write here 35 plus
There is no effect on capital to buy a loan
If you have to pay interest on the loan tomorrow, then it
will affect the capital, otherwise not
Finally, what will be the equation?
Cash is still of 85, good
Investment is still of 50,000, good
Stock has just come, 35
Is equal to, the liability has just come, of the name
Deepika, 35
And the capital is the same, 135
So let's do the total of both the sides, once this side
will come 35 plus 135
If you say, 1,70,000, 1,70,000
And this side, 85 plus 50 plus 35, how much is this brother?
85 plus 50 plus 35, this is also 170
This is also 1,70,000, this is also 1,70,000
This is also 1,70,000, this is also 170,000
Good, no issues
Next point
Paid cash for household expenses, 7000
Paid cash for household expenses, household expenses
Household expenses means, household expenses
Paid from the business cash
The child came to the shop, the owner of this business
He has a small child
That small child is very mischievous
He came to the shop, and started being stubborn
He said, Papa, Papa, today I saw my friend, he had such a
remote car
Remote car, remote car used to come in our time
He has a car, that small one that comes with kids
I also want it, and if you want it, if you want it, if you
want it
Otherwise, I will tell my mother
I will tell everything
When you are chatting alone, I am watching from behind
I will tell everything to my mother
Sir, such a small child is so mischievous, is this what you
are saying in today's time?
What do 7-8 year old kids learn, what are you talking about?
And if you believe this, then believe it for 10 years, but
the story should be made, ultimately
Hmm, okay sir, so what will the father have to do?
What will the father have to do? What will the dad have to
do?
He will have to pay, he will have to spend
This is a matter of respect, this is a matter of family
peace
He said, okay, I will get it
There was no money in the pocket, there was no money in the
personal account
And just now, brother said, just now, just now
Like that movie, Singham's Jayakam Chikare, just now
Immediately took him to the shop, the car shop
And got him a car, and the money
The cash that was lying in the business, took it out from
there
Took it out from there, where did he spend this 7000 for
household expenses?
He did it from the business cash, not from his personal cash
What will happen? These are drawings
What are these drawings?
For household expenses, whenever a money is used by the
owner, business money
Then it is less than its capital, and its name is drawings
We call it drawings, and it is less than capital
Okay sir, let's put its effect
Let's see
The cash of 7000 will be reduced, absolutely right
The cash of the business will be reduced by 7000
The effect of the sixth equation is
Minus 7000 will be from the cash
No effect will be on my investment and my goods
Liability, as it is maintained, no effect will be on
liability
No effect will be on liability, plus
No, no, capital will be minus
Drawings will be minus 7000 from capital
So what will happen? The final equation will be
Cash will be 78
Investment is still 50,000
Goods is still 35,000
Liability is still 35,000
Plus, capital is 128
Now see, how much is the total?
How much is the total?
78,000 plus 50,000 plus 35,000
163,000
35,000 plus 128, 163,000
This is also 163,000
That's very much okay, both sides are tallied
Congratulations to you, both sides are tallied
Let's go to the next point
Sold goods for cash
Now you will make me do this point
You will make me do this point
Because we have done the same point previously
See how you will be able to do it, tell me
The goods that we have sold, the cost price is 10,000
Means we bought it from 10
So this is our 35,000 goods, which we bought in 35,000
These are our total goods of 35,000
Out of this, we picked up the goods of 10,000
And sold it for 14,000
So the cost price of these goods is 10,000
Sale price is 14,000
And how do you do the sale?
You do the cash
The money comes along with it
And the goods of 10 were sold for 14,000
So the profit was of 4,000
What will be the effect of these?
All children tell me
I will give you 10 seconds to think about everything
First, the cost price is 10,000
What will be the effect of the goods that we sold? 10, 9,
8, 7, 6, 5, 4, 3, 2, 1
Sir, it will be less than the stock
I said great
Out of 35,000 stocks, we picked up the goods of 10,000
And gave it to the other party
Then it was left with only 25,000 10,000 will be less than
that
Absolutely right, no problem, no issues at all
Very very right
Thereafter, what will be the effect of this 14,000 cash?
10, 9, 8, 7, 6, 5, 4, 3, 2, 1
Sir, is this something to ask?
That's why I did it quickly
Sir, this will be plus in cash
Very good, very good
And what will happen to the profit of 4,000?
What will happen to the profit of 4,000?
Sir, the profit will increase our account
We will do it in capital
The profit will increase our account
We will do it in capital
Plus 4,000
Okay, okay, I understand
Come on, do these three effects
Minus 10,000 from the goods
Seventh point
Plus in cash
Plus in cash 14,000 No effect on investment
On the other hand
No effect on liability
Yes, my capital
The profit of 4,000 will be added to it
So friends, you see 14,000 minus from the asset side
And 10,000 14,000 plus and 10,000 minus
So the effect on the asset side is
Plus 4,000
Plus 10 minus
So net you added 4,000
Net you added 4,000
And on the other hand
Plus in capital 4,000 So the effect has to come
So finally
After this, the effect will be that
My cash 92
Plus My investment 50,000
Plus My stock is 25
My stock is 25
Liability is still 35
Plus capital 132 Capital is 132
Let's total it out 92 plus 50 plus 25 167 And on the other
hand 35 plus 132 167 Congratulations Good
After this
Cash paid to Deepika 35,000 What will happen
We told Deepika
Deepika ji
Come and do your math
Whatever your liability is
We have been seeing it for a long time
Now we don't like it
Now we want to repay it and finish it
Since when 35 35 35 35 35 35 35 35 35 35 35 No effect on
investment
No effect on shares
No effect on stock
And my liability
Will be minus 35,000 You have paid the full liability
So minus it and finish it
And this transaction on capital
No effect
So finally my equation will be
After the eighth point
That 92 minus 35
My cash will be left 37 No, no, sorry 57 57 57 Plus
investment 50,000 plus goods 20 25 Liability Plus Plus Plus
Plus Plus Plus Plus Plus Plus Plus Plus Plus Plus Plus Plus
Plus Plus Plus Plus It is only 132, congratulations,
congratulations, very very good, this is also 132, 132,
well done, good.
Next point.
Bro, it was directly minus 35 from here and minus 35 from
here as well.
Last point.
Deposited into bank 20,000.
Now somewhere he has come to his senses.
And he remembered Modi ji's digital India.
Now somewhere he has come to his senses.
In the beginning, everything is being done in cash.
Cash dealing is being done, cash transactions are being
done.
Tell me.
Now he came to his senses that it will not work without the
bank.
Check-back is needed.
Big parties have started coming.
And they believe in dealing through the bank.
Business will be obtained through the bank.
So now we have to do transactions from the bank.
He deposited 20,000 in the bank.
What will happen?
Cash will be reduced.
From 20,000.
It is simple.
You had cash in your pocket.
Business cash.
You went and deposited it.
And where did that money go to the other side?
Your money was kept in the business.
And you picked it up from here.
And went to the bank and delivered it.
So the cash is not here now.
Cash is less.
Cash will have to be minus.
Cash is gone from here.
Okay sir.
Where did that money go?
Went to your bank account.
So there is an asset called bank account.
It will be plus 20,000 in it.
So it is very simple.
It will go from one place.
One asset will go.
And it will change into another form.
That's it.
Take out 20,000 from cash.
Write in the name of a new asset.
Bank balance.
Take out 20,000 from cash.
From one asset.
Write in the name of a bank balance.
Do you know what they are called?
For such types of transactions.
There is a name in the account, friends.
Contra.
Contra entries.
All children will pay attention.
A very valuable word has come.
A very knowledgeable word has come.
Coming out in front of you.
We give such transactions a name.
Contra entries.
Whenever you are in the bank.
Take out cash from the business.
You will go and deposit it.
That will also become a contra entry.
Along with that, if you had done the opposite.
If you had kept the money in the bank.
You needed cash to pay someone.
You went to the bank.
You withdrew and brought it.
Or for small expenses.
We can't check the UPI on the phone again and again.
Payment from the cheque.
We need cash.
For some small expenses.
So we went to the bank.
We have to withdraw 20,000.
That too.
That will also become a contra entry.
Always remember.
Close your eyes with me.
Put your hand forward and swear.
Close your eyes.
Put your hand forward and swear.
Speak with me.
I will not be able to speak like a joke.
Oh God, we are coming to your refuge.
Do not worry.
Speak with me.
In accounts.
There are two types of entries.
Which we call.
One of them is.
To deposit cash.
One of them is.
To deposit cash in the bank.
And the other is.
To withdraw cash from the bank.
And the other is.
To withdraw cash from the bank.
Bravo.
Good.
Bravo.
Deposit cash in the bank or withdraw cash from the bank.
This is called.
Contra entries.
Alright.
So what will be its effect?
Cash minus.
On the other hand, for example, if you withdraw money from
the bank, then the cash would have been plus and the bank
balance would have been minus.
This is the effect of deposit entry.
For example, if you are withdrawing money from the bank,
then the cash would have been plus and the bank balance
would have been minus.
So, for now, it is a deposit.
We will minus the cash and give birth to a new asset called
the bank.
So, on the 9th point, you have learned contra-entry at this
point.
Minus the cash, 20,000.
No effect on investment, no effect here.
No effect here, no effect on capital.
What is the second effect, sir?
A new asset has come, bank.
Write a new asset, bank.
Write 20,000 in it.
It was 0 till now.
So, what will be the equation now? 57 minus 20.
37 is your cash.
Plus.
Investment has done wonders.
It has been made from start to finish.
Plus.
Stock 25.
Plus.
Bank balance 0 deposit 20.
20,000.
Liability is still alive.
Sorry, sorry, sorry.
Liability 0.
As it is.
Previous entry.
Plus.
Capital is still alive.
132.
132,000.
So, the right-hand side.
37 plus 50 plus 25 plus 20
Today also this is total telly
This is very much talent
Ok friends
Friends Let's revise quickly
Started with cash
Here cash will increase and there capital will increase
Good Here cash will increase and there capital will increase
Very good
Investment in share
Cash will decrease and investment will increase
Asset side is 50,000 minus and asset side is 50,000 plus
Equation is still telling
Received dividend
Cash will increase to 5000
Capital will increase to 5000
Purchase goods on credit from Deepika
Goods will increase
Asset will increase to 35,000
If you buy loan then liability will also increase to 35,000
Asset will increase to 35,000 and liability to 35,000
Paid cash for household expenses 7000
Minus from cash 7000
Minus from capital 7000
Drawings always minus from capital
Sold goods for cash 10,000 cost price 14,000 sold
Stock will be less than 10,000
Cash will be 14,000 14,000 plus asset side 10,000 minus net
effect
This side 4,000 minus
In capital
Same effect
Cash paid to Deepika
Cash less, and new asset
This is the benefit of doing so much
Or I can say
The benefit of doing so much
You can predict the effect of asset
Not like
Click, see, present it, understand it, so that it flows
straight to your mind.
But if you want to work practically, in a fast way,
practically, then what do you have to do?
Friends, you should know this thing point to point.
As soon as you speak, someone tells you that it is like
this.
Someone asks you, you tell the effect in two minutes.
Not by writing.
Okay, sir.
So for that, revision is necessary.
Do revision quickly.
We will keep meeting you in the coming clips.
Till then, thank you.
Bye bye, my dear friends.
Keep revising, keep revising.
That's all I have said and will say all throughout the
course to you.
Keep revising.
Bye.