Question

3. Prove that the accounting equation is satisfied in all the fol
Suresh and prepare balance sheet at the end
(1) Commenced business with cash 89,000 and bank balance 40,000
(ii) Cash withdrawn from bank for office use ? 15,000.
(iii) Internet bill paid in cash 9,000,
(iv) Commission received by cheque 21,000.
(v) Cash withdrawn from bank for personal use 11,000.
(vi) Additional capital introduced 24,000.
(vii) Charged interest on drawings * 2,000.​

Answer 1

Answer:

1) Cash 89,000 (Dr) | Capital 129,000 (Cr)

Bank 40,000 (Dr)

2) Drawings 15,000 (Dr) | Cash 15,000 (Cr)

3) Bill 9,000 (Dr) | Cash 9,000 (Cr)

4) Cash 21,000 (Dr) | Commission Received 21,000 (Cr)

5) Drawings 11,000 (Dr) | Bank 11,000 (Cr)

6) Cash 24,000 (Dr) | Capital 24,000 (Cr)

7) Drawings 2,000 (Dr) | Interest 2,000 (Cr)