Question

8. Develop an Accounting Equation from the following transactions:
(i) Mohan commenced business with cash
50,000
(ii) Purchased goods for cash
30,000
(iii) Purchased goods on credit
20,000
(iv) Sold goods (costing * 10,000) for
12,000
(v) Bought furniture on credit
2,000
(vi) Paid cash to a creditor
15,000
(vii) Salary paid
1,000
[Assets: Cash 16,000 + Stock* 40,000 + Furniture 2,000 =
Liabilities: Creditors 5,000 + Vendor for Furniture 2,000 + Capital: 3 51,000.)
9 Prenare on Aunting notion on the basis of the following transactions,​

Answer 1

Answer:

Assets = Liabilities + Capital (Income - Expenses)

Explanation:

1. 50000 = 0 + 50000

2. 20000 - 20000 = 0 + 0

3. 20000 = 20000 + 0

4. 12000 - 10000 = 0 + (12000 - 10000)

     2000 = 0 + 2000

5. 2000 = 2000 + 0

6. -15000 = -15000 + 0

7. -1000 = 0 + 0 (0 - 1000)