Question

29.
Show the effect of the following transactions on the Accounting Equation:
1) Navjot started business with cash 7.80,000 and Bank balance 3. 30.000
2) Rent paid 3.5.000 by cheque.
Rent due but not paid . 6,000.
Salary paid for the next year 7,000.
5) Commission received . 11,000
Commission due hnt not received 11000
3)
DWS​

Answer 1

Explanation:

• 1 )

cash a/c 12,00,000

to capital a/a. 12,00,000

2). 1) rent wages a/c 3,5,000

to Bank a/c. 3,5,000

2) rent a/c 6,000

to rent outstanding a/c. 6,000

3) salary a/c 7,000

to cash a/c 7,000

3). received commission a/c 11,000

to cash a/c 11,000

4) Commissions pending a/c 11,000

to cash a/c 11,000

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