Question

19. Show the Accounting Equations on
the basis of the following transactions :
1. Started business with cashRS- 100000 2.Purchased
machinery from Ajay RS-50000 3.Purchased goods
from SachinRS-20000 4.Outstanding rent RS-500​

Answer 1

Answer:

1) asset - cash 100,000 and liabilities- capital 100,000

2)asset - Machinery 50000 and liabilities- creditor 50000

3) asset - purchases 20000 and liabilities- creditor 20000

4) liabilities - outstanding expenses 500 and liabilities- capital 500