Question

22. Show the effect of the following business transactions on assets, liabilities and capital
through accounting equation:
(5)
Rs.
(i) Commenced business with cash
20,000
(ii) Goods purchased on credit
7,000
(iii) Furniture purchased
3.000
(iv) Paid to creditors
2.000
(v) Amount withdrawn by the proprietor
4,000
(vi) Creditors accepted a bill for
1,500
(vii) Interest on capital
1.000
(viii) Transfer from capital to loan
5,000​

Answer 1

Answer:

Show the effect of the following business transactions on assets, liabilities and capital

through accounting equation:

(5)

Rs.

(i) Commenced business with cash

20,000

(ii) Goods purchased on credit

7,000

(iii) Furniture purchased

3.000

(iv) Paid to creditors

2.000

(v) Amount withdrawn by the proprietor

4,000

(vi) Creditors accepted a bill for

1,500

(vii) Interest on capital

1.000

(viii) Transfer from capital to loan

5,000