Question

4,000.
Show the effect of the following transactions on the accounting equation:
( Started business with cash 20,000, goods 30,000 and furniture # 10,000
(ii) Bought goods on credit from Ram 25,000
(iii) Bought goods for cash 10,000
(iv) Returned goods to Ram worth 4,000
(v) Sold goods costing * 20,000 for 26,000 in cash.
(vi) Settled the account of Ram át a discount of . 1,000
(vii) Charge interest on capital 3,000
Stock 7 41000 + Furniture * 10,000 = Capital 67,000)
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Answer 1

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