20) Use Accounting Equation to show the effect of the following transactions of Ram Traders a) Started business with cash 1,00,000 b) Bought goods for cash 20,000. c) Cash sales 60,000.
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Answer:
20000
Explanation:
100000-(60000+20000)= 20000
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20) Use Accounting Equation to show the effect of the following transactions of Ram Traders-
In the books of Ram Traders dated as on
a)Started business with cash 1,00,000
- Cash A\c Dr. Rs. 1,00,000
To Capital A\c Cr. Rs. 1,00,000
(Being -commenced the business with cash)
- Cash is debit so it
b) Bought goods for cash 20,000.
- Purchase A\c Dr. Rs. 20,000
To Capital A\c Cr. Rs. 20,000
(Being -Purchase goods for cash)
c) Cash sales 60,000.
- Cash A\c Dr. Rs. 60,000
To Sales A\c Cr. Rs.60,000
(Being - Goods sold for cash)
So the following accounting equation is
Rs. 1,00,000 - (20,000+60,000)
⇒Rs. (1,00,000 - 80,000)
⇒Rs. 20,0000
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