Question

15.
Prove that accounting equation is satisfied in all the following transactions of Prakash:
(a) Started business with cash * 60,000, goods 30,000 and furniture * 10,000.
(b) Purchased goods on credit 12,000 and for cash 18,000.
(c) Paid for commission 2.000 and for salaries 4,000.
(d) Rent outstanding 4,000.​

Answer 1

Answer:

a. cash Dr

Stock Dr

Furniture Dr

To capital Cr

b. Purchase Dr

To Creditors Cr

To Cash Cr

c. Commission Dr

Salary. Dr

To cash/ Bank Cr

d. Rent Dr

To O/s Rent Cr.