We will start writing friends, some more points, some more
discussions, we will do some more long discussions with you.
Let's start, some different things that will take the
counting equation further and then we will see what else
can be done in this topic in this chapter.
For now, start writing with me without any delay.
Another example is coming your way.
You will learn many more things through this example.
On the accounting equation.
With
Cash
Goods
Building Cash, Goods, Building
Two lakh thirty thousand
One lakh
Two lakh
Two lakh thirty thousand
One lakh
Two lakh
Number two
He purchased goods for cash fifty thousand.
He purchased goods for cash rupees fifty thousand.
He sold goods for cash.
Costing twenty thousand.
In thirty five thousand.
He purchased goods from Rahul fifty five thousand.
Number five written.
Sold goods to Varun costing fifty two thousand.
Sold goods to Varun.
Costing rupees fifty two thousand.
For sixty thousand.
Costing rupees fifty two thousand for sixty thousand.
Paid cash to Rahul in full settlement fifty three thousand.
Paid cash to Rahul in full settlement rupees fifty three
thousand.
Salary paid twenty thousand.
Point number eight.
Received cash from Varun.
Rupees fifty nine thousand.
In full settlement.
Rent outstanding three thousand.
Commission received by him thirteen thousand.
Amount withdrawn by him for personal use twenty thousand.
Amount withdrawn by him for personal use two thousand.
Amount withdrawn by him.
For personal use.
Rupees twenty thousand.
Last but not the least.
Depreciation charged on building.
Rupees ten thousand.
Depreciation charged on building.
Rupees ten thousand.
Is it done?
Yes, it is done.
You write.
If something is left here, you can pause and write.
Then, if something is left here, you can pause and write
quickly.
And finish the example.
One, two, three, four, five, six, seven, eight, nine, ten,
eleven.
This has twelve points.
and write like this write on landscape not in portrait
because you need more space assets is equal to
liabilities plus capital
assets is equal to liabilities plus capital write now after
this you have to tell the effects one by one of all things
ok very important question uncountable important question
come on number one
Manmohan started business with cash goods
Manmohan started business friends this time and you know
the effect of putting cash 2,30,000 what will happen?
2,30,000 what will happen with 2,30,000 my capital will
increase but friends in this question there is another
point he put goods and building in the beginning what is
the meaning of putting goods and building sir first capital
is put then from that money goods and building are bought
what did Manmohan do 2,30,000 which was in his pocket he
put it in business some of his household
he put it in business to sell and his building he had a
plot he made a building he used it for personal use he made
office in it
This time he has started with three things
Cash, Goods and Building
In the beginning, the account is 2,30,000, 1,00,000 and
2,00,000
Total 5,30,000 5,30,000 Some in the form of cash, some in
the form of goods
Some in the form of building
The account has been increased this time
Extra has been added
So assets will start with three assets
Will start with three assets
Cash Goods Building Cash Goods Building Cash 2,30,000 Goods
1,00,000 Building 2,00,000 Goods 1,00,000 Building 2,00,000
3,30,000 5,30,000 yes 5,30,000 Okay Remember this point
It is not necessary for the start
Capital Capital debt
Deposit Goods Non-cash Capital In-kind capital
This is called In-Kind Capital
How is their entry in telly, everything will be taught
Entry of In-Kind Capital, we have a whole clip
Capital Investment Entry, in that Investment in Cash,
Investment in Bank
Goods, Building Stock, Non-Cash, i.e.
In-Kind Investment
In-Kind Capitalization, everything has been taught
So this is our equation on the first point
After that, what is on the second point Purchased Goods for
Cash
Purchased Goods for Cash of Rs.
What to do?
Cash payment will be done, so cash will be minus
Cash will be minus Rs.
And my goods will increase by Rs.
Cash will be minus Rs.
50,000 and my goods will increase by Rs.
No effect on building, no effect on liability and no effect
on capital
So after this second transaction
My equation will be
Purchased Goods for Rs.
Plus Goods for Rs.
Plus Building is still there, Rs.
Is equal to Liability is 0
Plus Capital Rs.
Right side total is Rs.
Left side total is Rs.
1,80,000 and Rs.
Rs. 5,30,000 and Rs.
Both sides total is Rs.
Third point
Purchased Goods
Goods purchased in Rs.
20,000 are sold in Rs.
Goods purchased in Rs.
20,000 are sold in Rs.
You have done this many times
Cash will be Rs.
Goods purchased in Rs.
20,000 will be minus Rs.
Goods purchased in Rs.
20,000 will be minus Rs.
Profit of Rs.
15,000 will be added to your capital
Profit of Rs.
15,000 will be added to your capital
Profit of Rs.
15,000 will be added to your capital
Friends, add Rs.
35,000 to Cash
Friends, add Rs.
35,000 to Cash
Minus Goods will be Rs.
Building and Liability is still there
Plus Capital Rs.
What will be the equation after the third point?
Rs. 18,000 and Rs.
Cash Rs.
Goods Rs.
150,000 minus Rs.
Building Rs.
Liability Rs.
Lability Rs.
Fourth Point
He purchased goods from Rahul for Rs.
Rahul is not mentioned anywhere
Rahul is not mentioned anywhere purchased on credit means
UDHAR 55000 so what will happen
UDHAR will increase but at the same time
Rahul will take birth from 55000 which was not there he
will take birth there will be no effect on capital neither
on building nor on cash so finally what will be my equation
finally what will be my equation
after 4th point cash of 2.15 as it is plus goods 185 plus
building as it is maintained 2 lakh is equal to Rahul 55000
plus capital 545 right hand side total is 6 lakh and left
hand side 2 and 3 and 4 and 2 6 lakh total of both sides
left hand side is equal to right hand side at 5th point
sold goods to Varun costing 52 for 60,000 see this time
also goods of 52 will be minus 52 and in 60,000 you have
sold profit of 8000 will be plus in your capital profit of
8000 will be plus in your capital ok
and sir cash will not come 60,000 this time only you have
to take care cash will not come 60,000 this time only you
have to take care cash will not come 60,000 why? you see
Varun has given money if point is silent only sold goods
and person's name is silent, credit sale credit sale so a
debtor will be created by name Varun new asset of 60,000
will be created people with whom we buy loan we call them
creditor like Rahul he is our liability people with whom we
sell loan we call them debtor d e b
o r and they are our asset so this time cash asset will not
come debtor asset will come from 60,000 yes sir so friends
what you have to do will minus from goods 52 and new assets
will be created by name of debtor what is name of debtor?
Varun
Varun which was not there till now suddenly a debtor named
Varun will come to us plus 60,000 and profit of 8000 will
be here plus in capital profit of 8000 will be here plus in
capital now let's see what is our equation after fifth point
friends cash asset is 2,15,000 1,83,000 plus building
2,00,000 plus new debtor 60,000 is equal to
liability 0 plus 5,53,000 5,53,000 3,48,000 5,48,000
6,08,000 55,55,55,55 total of both sides is coming 6,08,000
and 6,08,000 6,08,000 6,08,000 ok sir write it after that
sixth point next is sixth point next is sixth point
hu hum hu hum hu hum hu h em hu hu hu good good good good
six six six six full settlement in full settlement, this
word is expensive, see friends, how much loan did you buy
from Rahul in 4th point, sir 55000 and today we are paying
Rahul 53 and saying full settlement, this word is very
expensive, full settlement, this means we have cleared the
account from Rahul sir we had a loan of 55000, we cleared
the account in 53, yes this happens, when you go to make
payment, you do bargaining negotiation with him and take
discount so you took 2000 discount from
you took 2000 discount from him, payment of 55000,
liability of 55000 was cleared only by paying 53000 do you
know what will be the effect of this, cash will be less
than 53000, because you have paid cash only 53000 and your
liability will end with 55000, because there was no loan
left, we gave 53000 and said 55000 is clear, and he also
said that there is no problem so one side is getting 53
minus and other side is getting 55 minus and he gave 2000
discount, so friends the discount we got
This is our profit, so it will be added to our account.
2000 rupees discount received will increase our capital.
Any income will increase our capital.
Any expense will reduce our capital.
So friends, here it was minus 53 and here minus 55 plus 2000
Here too, the effect of minus 53 is coming.
So what will be my equation after the 6th point? 15 minus
53, 162, 162 cash plus 133 as it is plus 200000 as it is
plus 60000 as it is
There is no effect on them.
Liability 0 plus 553 and 2
Capital 55555000
So let's see the total on this side.
162 plus 133 plus 260000 55555555 The total on both sides
is the same.
555000 Very very good
Let's move on to the 7th point.
Salary paid 20,000 rupees is very simple.
Minus 20,000 from cash
There is no effect here.
And salary is an expense due to which your account will be
reduced by 20,000.
So what will be my equation after the 7th point? 142 plus
133 plus 200000 plus 60000 is equal to 0 plus 535000
The total on the left side is also 535 and the total on the
right side is also 535.
8th point
Received cash from Varun 59000 in full settlement
How much loan did you sell to a person named Varun in the
5th point? 60,000 In your equation, how much is the debtor
named Varun? 60,000 We have to take 60,000 from him.
But he came and he said hold 59 and clear the account.
We will continue to do business in the future.
Give a discount of 1000
He took a discount of 1000 from us this time.
So do you know what will happen?
What will happen in 8th point?
Cash will come to you only 69000
And friends, friends, your debtor will run out of 60,000.
Because now he is not going to give a rupee.
He said for the account
And these two will have no effect.
No effect on liability
And the discount you have given of 1000
This is your loss.
This will reduce your account.
This is your loss.
This will reduce your account.
Will reduce the capital
So friends, what is the equation after this point?
This is your 1,99,000
Am I saying wrong?
No 2,00,000 Sorry This is your 2,00,000
Plus 133
Plus 2,00,000
Plus 0
Is equal to 0 plus 534
Both sides are equal
You check
Both sides have a total of 534,000
Yes sir
Rent Outstanding 3000
Outstanding means not paid
But the expense is done
Now accounting is done on an accrual basis
Accounting is done on an accrual basis
Even if you have not paid the expense
You will have to record it
So reduce it from the account
Reduce it from the account
Rent Outstanding 3000
Even if the expense is not paid
Even then it will be deducted from the account
This is called an accrual concept of accounts
And because you have not paid
Because you have not paid
So a new liability will be created equal to Rahul
In the name of Rent Outstanding 3000
One side will be 3000 plus
This side will be 3000 minus
No effect of 9th point on any item on this side
Will not fall
Whether it is Rent Outstanding or any other expense
Which you got the work done
Used the building from the other party
And you have not paid the money yet
So your account will be less and a liability will come
Liability will come because you have not paid
Got the work done
Have to pay
And the account will be reduced because
It is called an accrual concept
Even if you do not pay
But the expense is
Not today, tomorrow you will pay
Capital will be deducted today
After this the equation will be 2,00,000 Plus 133
Plus 2,00,000
Plus 0
Is equal to 0 plus 3,000
Plus 531
So even today the total of both sides is 534 534 10th point
Commission received 13,000
Very simple 13,000 will be plus in cash
And commission is your income
That's why it will be added to your account 13,000
13,000 will be added to the account
So what will happen after the 10th point equation 2,00,000
and 13,000 2,14,000 2,14,000 Plus 133
133
Plus 2,00,000
Plus 0
Is equal to 0
Plus Rent outstanding
Not yet paid 3,000 Plus 531 and 13,000 544,000 544,000
Total of both sides 547 And 2,1,3,4 547 547 Total of both
sides 547 547
11th point
Cash You know the effect of 30 Arabic
If you draw
So minus from cash
And minus from capital here
No effect on this
So the equation will be after the 11th point
2,14,000 minus 20 194
194 Plus 133
Plus 2,00,000
Plus 0
Is equal to 0
Plus 3,000
Plus 524
Total of both sides 527 527 Last but not the least
Last but not the least
Depreciation
What will happen with depreciation
Depreciation is not such an expense
Which you have to pay in cash
Depreciation means
Your asset cost
Which you allocate
Asset cost
Which you allocate
What will happen with depreciation
The value of the building will fall
How much depreciation 10,000 So one
The value of the building will fall
The value of the building will be
Minus 10,000
Always remember
Whichever item
You are putting depreciation
So the effect of depreciation
Will be that
Its value will fall
Depreciation means
That your 2,00,000 building
Will be minus 1,90,000
The value of the building
Has fallen
So you have to minus 10,000 from the building
And your account
Will be less
Because any
Fall Any expense
Any loss
Any income
Will be adjusted by capital
Rent outstanding
Will be 3,000
This liability will be 0
And it will not affect them
So the last equation
Will be the final equation
Cash 194 Plus goods 133 Plus building 190
Debtor 0
Liability 0
Rent outstanding 3,000 Plus 5,14,000
So this is done
The total on the right side 5,17 And on the left side
194 Plus 133
Plus 190
This is also 5,17,000 The equation is
Talid from both sides
The equation is
Talid both ways
My dear friends
If anyone has anything left
Then note here
By kindly pausing
Note here
By pausing
Note here
By pausing
Note here
And Note here
By pausing
Okay Okay sir
Please review continuously
The new point was
The discount you will give
Will be minus from capital
And the discount you will get
Will be plus in capital
Even if the expense is outstanding
Even then
Minus from capital
And create liability
Like rent outstanding
And depreciation
On whichever asset
Will lower its value
Depreciation On whichever asset
Will lower its value
And And And Along with
With your capital
Will lower it
With your capital
And And