Question

08.Show the effect of the following transactions on the accounting equation:
1. Started business with cash 70,000 and goods 50,000
2. Sold goods for cash 30,000 costing 40,000
3. Paid salary in advance 7,000
4. Purchased goods for cash 60,000 and on credit 52,000
5. Paid rent 6,000 in cash and rent outstanding 2,000
6. Proprietor paid fees of his children 10,000
7. Commission received in advance 6,000
8. Accrued interest 4,000.​

Answer 1

Answer:

1.cash ac dr

good ac dr

to capital Ac

3.Salary ac dr

to cash ac

4.Purchases ac dr

to cash Ac

to goods Ac