Question

Create an Accounting Equation to show the effect of the
(vii) Bought furniture 5,000 on credit.
(viii) Bought refrigerator for personal use 5,000.
(ix) Purchased motorcycle for cash 20,000.
Raghunath had the following transactions in an accounting year:
(i) Commenced business with cash 50,000.
(ii) Paid into bank * 10,000.
(iii
) Purchased goods for cash 20,000 and credit 30,000.
(iv) Sold goods for cash 40,000 costing * 30,000.
(u) Rent paid 500.
(vi) Rent outstanding * 100.​

Answer 1

Answer:

vii) Furniture Ac Dr. 5000

to creditor. 5000

viii) (no record in business books )

ix) Motorcycle Ac Dr. 20,000

to cash Ac 20,000

i) Cash Ac Dr 50,000

to capital Ac 50,000

ii) Bank Ac Dr. 10,000

to cash Ac 10,000

iii) Purchases Ac Dr. 50,000

to cash Ac 20,000

to crediors Ac 30,000

iv) Cash Ac Dr. 40,000

to purchases Ac. 30,000

to profit and loss Ac 10,000

u) Rent Ac dr 500

to cash Ac 500

vi) Landlord Ac Dr 100

to rent outstanding 100