Question

From the following transactions prove the accounting equation

1. Started business with cash Rs 100000 and stock Rs 50000

2. Purchased goods worth Rs 30000

3. Sold goods on credit Rs 10000

4. Sold goods (costing Rs 20000) for Rs 15000

5. Paid rent Rs.2000​

Answer 1

1 Cash Dr. 100000
Stock Dr. 50000
To Capital. 150000

2. Purchase Dr. 30000
To Creditor. 30000

3. Debtor Dr. 10000
To Sales. 10000

4. Debtor. Dr. 15000
Loss. Dr. 5000
To Sales. 20000

5. Rent. Dr. 2000
To Cash. 2000