Question

f. Cash purchases Rs 5000
5. Use Accounting Equation to show the effect of the following
transactions of Ravi Traders.
a. Started business with cash 1,00,000
b. Bought goods for cash Rs.20,000
c. Rent received Rs. 5,000
d. Salary outstanding Rs. 10,000
e. Goods destroyed by fire Rs. 13,000
f. Paid for charity Rs 200​

Answer 1

Answer:

Total Assets 86800 = Total liabilities and capital 86800

Equation balanced

Explanation:

Asset                                         =          Liabilities     +           Capital

100,000                                     =                              +           100,000

Goods +20000

Cash -20000

Cash +5000

Cash -5000                               =   +10,000            +           -10000

-13000                                       =                             +           -13000

Cash -200                                 =                             +           -200

Total Assets

86800                                      =    Total Liabilities 10000 + Total Capital 76800