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Questions and Answers
What was the starting cash amount for Vaibhav's business?
What was the amount of goods purchased on credit from Rile?
100000
How much was the laptop purchased for office use?
10000
Vaibhav sold goods to Rina on credit for 12000.
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What amount was received as interest?
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Vaibhav paid a telephone bill of ______.
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Study Notes
Business Transactions Overview
- Vaibhav initiated business with a cash investment of 100,000.
- Purchased goods on credit amounting to 100,000.
- Initial cash balance stands at 97,000 after purchases.
Asset and Liability Breakdown
- Total assets accumulated include cash and goods amounting to 109,000.
- Liabilities reflect obligations incurred from credit purchases and loans.
Equipment Acquisition
- A laptop for office use was purchased for 10,000, increasing asset value.
- Total assets remain at 109,000 even after accounting for this purchase.
Sales Revenue
- Goods sold to Rina on credit for 12,000 integrated into the asset total.
- Credit sale enhances liabilities related to receivables.
Interest Income
- Interest earned amounted to 200, contributing to an increase in total assets.
- New total assets adjusted to 111,500 following the interest income.
Expense Management
- Telephone bill payment of 1,300 impacts total assets by decreasing them.
- Adjusted total asset value after the bill payment is 110,920.
Summary of Financial Position
- The college's financial dealings encapsulate cash influx from sales and interest, alongside credit purchases and operational expenditures.
- Continuous monitoring of assets and liabilities is crucial for maintaining financial health.
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Description
This quiz revolves around basic concepts of accountancy, including asset management, capital, and liability. Participants will review various financial transactions, such as starting a business, purchasing goods, and acquiring office equipment. Test your understanding of balancing accounts and accurate financial recording.
