Question

28 What will be the effect of the following on the Accounting Equation?
a) Harish started business with cash 1,80,000
b) Purchased goods for cash 60,000 and on credit 30,000
c) Sold goods for cash 40.000, costing 24,000
d) Rent paid 5,000 and rent outstanding 2,000
e) Sold goods on credit 50,000 (costing 38,000)
f) Salary paid in advance 3,000​

Answer 1

Explanation:

cash a/c dr. 180000

to capital a/c 180000

purchase a/c dr.90000

to cash a/c. 60000

to bank a/c 30000

cash a/c dr. 40000

to sales a/c 40000

rent a/c dr. 7000

to o/s rent 2000

to cash a/c 5000

Bank a/c dr. 50000

to sales a/c 50000

prepaid salary dr. 3000

to salary alc 3000