Question

9. Show that accounting equation is satisfied in the following cases:
1. Sumit commenced business with cash 40,000 and goods * 25,000
2. Sold 40% goods at a profit of 30% to Sohan.
3. Goods costing 1,000 was given as charity and goods worth 2,000
was taken away by Sumit for domestic use.
4. Salary is paid as advance 3,000 to a worker, Ram whose wife is
ill.
5. Insurance Premium was paid 4,000 of which Yth relates to next
year.
6. Rent paid 5,000 but it is still due 1,000.
ans. Cash 328,000 + Stock * 12,000 + Debtors 13,000 + Prepaid Expenses
*4,000 = Outstanding Expenses 1,000 + Capital 56,000]​

Answer 1

Answer:

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Explanation:

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