Question

b.
20. Prepare Accounting equation on the basis of the following.
a. Ashwin started business with cash Rs.2,50,000
Purchased furniture for cash Rs.35,000
C. Paid rent Rs.2,000
Purchased goods on Credit Rs.40,000
e. Sold goods for Rs.20,000 on credit.
f. Gave loan to Anil Rs.5.000
d.​

Answer 1

Explanation:

Assets = Capital + Liability

cash + furniture+ stock

2,50,000 2,50,000

-35,000 + 35,000

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2,15,000 + 35,000 = 2,50,000

-2,000 -2,000

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2,13,000 + 35,000 = 2,48,000

+40,000 + 40,000

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2,13,000 +35,000 +40,000 = 2,48,000 + 40,000

-20,000 -20,000

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2,13,000 +35,000 +20,000 = 2,48,000 +20,000

-5,000 -5,000

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2,08,000+35,000+20,000 = 2,48,000 +15,000

2,63,000 = 2,63,000