Question

18.Prove that the accounting equation is satisfied in all the following transactions of Praveen.

1.Commenced business with cash.50000
2.Purchased goods on credit. 15000
3.Purchased goods for cash 30000
4.Bought furniture 4000
5.Cash paid to creditors 6000
6.Paid rent 1400
7.Received commission 2000
8.Sold goods costing rs.7000 on credit for 8500.

Answer 1

Answer:

cash paid to creditors 6000