Question

Gaurav had the following transactions. Use accounting equations to show their effects on his assets, liabilities and capital :
(a) Commenced business with cash 1,00,000
(b) Purchased goods * 40,000 on credit
(c) Sold goods for 35,000 (costing 26,000) on credit
(d) Returned goods to supplier * 10,000
(e) Salaries paid * 600
(f) Salaries outstanding * 120
(g) Bought machinery for 5,000 on credit
(h) Goods returned by a customer cost * 13,000
G) Bought Almirah for personal use 4000​

Answer 1

Answer:

Explanation:ASSETS=LIABILITIES+CAPITAL

                     ASSETS-CAPITAL=LIABILITIES

                     ASSETS-CAPITAL-LIABILTIES=0