Question

26. Prove that accounting equation is satisfied in all the following transactions
a) Commenced business with cash 50,000 goods 20,000 and furniture 30,000
b) Purchased goods from Shyam on credit 50,000 costing 40,000
Interest on capital * 2,000
Received Commission 1,200 and paid for printing 1,800​

Answer 1

Explanation:

cash 50000

good 20000

furniture 30000

To capital. 100000

being start business with cash good furniture

purchase 40000

To shyam 40000

being purchase good on credit

interest on capital 2000

To cash

being interest on capital

commission 2000

To cash 2000

commission received