Question

1. Show the effect of following transactions on the accounting equation :
(i) Sonia Started business with cash ` 40,000, stock ` 30,000 and machinery ` 60,000
(ii) Goods costing ` 25,000 sold for ` 28,000 and credit.
(iii) Purchased goods on credit ` 35,000.
(iv) Depreciate machinery by ` 5,000.
(v) Cash received ` 11,500 in full settlement of account of a customer ` 12,000.
(vi) Bad debts written off ` 2,000.
(vii) Cash paid ` 9,700 to creditors and discount received ` 300.
(viii) Bad debts recovered ` 1,200.

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Answer 1

Answer:

this soo hard