Question

Create Accounting Equation from the following information.

1) Commenced business with cash Rs.50,000

2) Paid into bank Rs.10,000

3) Purchased goods for cash Rs.20,000 and credit Rs.30,000

4) Sold goods for Rs.40,000 costing Rs.30,000

5) Rent paid Rs.500

6) Rent outstanding Rs.100

7) Bought furniture Rs.5,000 on credit

8) Bought refrigerator for personal use Rs.5,000

9) Purchase motorcycle for cash Rs.20,000​

Answer 1

Answer:

1) Cash A/c Dr. 50000

To Capital A/c 50000

2) Bank A/c Dr. 10000

To Cash A/c 10000

3) Purchases A/c Dr. 50000

To Cash A/c 20000

To Creditors A/c. 30000

4). Cash A/c Dr. 40000

To Sales A/c 40000

5). Rent A/c Dr. 500

To Cash A/c 500

6). Rent A/c Dr. 100

To Rent Payable 100

7) Furniture ( Fixed Assets)A/c Dr. 5000

To Suppliers A/c 5000

8) Drawing A/c Dr 5000

To Cash A/c 5000

9) Motorcycle(Fixed Assets)A/c Dr. 20000

To Cash A/c 20000