Question

1. What will be effect of the following on the Accounting Equation?(i) Started business with cash 45000.(ii) Opened a Bank Account with a deposit of 4,500.(ii) Bought goods from M/s. Sun and co. for rupees 11,200.​

Answer 1

Answer:

(I) cash A/C.....dr 45,000

to capital A/C 45,000

(ii) cash A/C.....dr 4,500

to bank A/C 4,500

(iii) purchase A/C.....dr 11,200

to M/s.Sun&Co. A/c 11,200