Question

23.Write the affect of following transactions while preparing Accounting Equation:(Increase/decrease of assets or liabilties or capital with amount)

(a)Furniture purchased for cash rs.20000 *

Your answer

(b)Sold goods costing rs.25000 for rs.35000 against cash. *

Your answer

(c)Cash withdrawn for personal use rs.5000

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Answer 1

Answer:

a) increase in furniture and decrease in cash

means increase in one assets and decrease in other assets b) increase in cash 35000

and decrease in stiock 25000 and increase in Capital 10000

c) decrease in cash 5000 and decrease in capital 5000