Question

1) Prepare an accounting Equation from the followering transactions
a) Ramesh started Business with cash 71,00,000
b) Goods purchased from sunil $20.720,000
c) purchased machinery for cash &50,000
d) sold goods costing & 10,000 for Rs. 9,500.​

Answer 1

Answer:

a)cash A/C Dr.71,00,,000

To capital A/C

(being business started with cash by Ramesh)

b)purchase A/C Dr. 20.720,000

To Sunil A/C

(being goods purchased from Sunil)

c)machinery A/C Dr.50,000

To cash A/C

(being machinery purchased for cash)