Question

4. Show the accounting equation for the following transactions.
Mr. Ketan Shah started business with cash 50,000.
Purchased goods from Ramesh 30,000. Withdrew goods for personal use * 2,000. Purchased household goods for 15,000 giving #5,000 in cash and balance through loan.
Paid cash 300 for interest.​

Answer 1

Answer:

Purchase A/c Dr... 8500

to Priya A/c. 8500

(11) Priya A/c. Dr... 8500

to discount A/c. 340

to cash A/c. 8160

(in) Purchase A/c. Dr... 45000

to cash A/c. 42750

to discount A/c. 2250