Question

7. Show the accounting equation is satisfied in the following cases:

i) Ram commenced business with cash Rs. 50,000 and goods Rs. 30,000.

ii) Sold 40% goods at a profit of 25% to Mohan.

iii) Paid salary Rs. 1,000 but Rs. 1,000 still remains unpaid.

iv) Paid insurance premium of Rs. 2,000 of which Rs. 500 relates to next year.

v) Mohan settled his account, 10% discount allowed to him.

vi) Goods costing Rs. 2,000 was distributed as free samples.





6

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Answer 1

Answer:

1.cash a/c Dr.

goods a/c Dr.

To ram' s capital a/c