Question

Create an accounting equation on the basis of the following transactions :

(i) Started business with cash 40,000 and furniture 20,000 (ii) Bought goods for cash 10,000 and on credit from Atul for 20,000

(iii) Goods bought from Atul on credit was sold for 26,000

(iv) Cleared the account of Atul by paying 19,500.

(v) Paid salary 6,000 and still unpaid 2,000.

(vi) Received commission 3,000 including 1,000 as advance.​

Answer 1

completed, the credit will