Question

Gaurav had the following transactions use accounting equation to show their effect on his assets liabilities and capital 1. Commenced business with cash rs. 100000 b. Purchased goods rupees 40000 on credits c.

Answer 1

Answer:

Explanation:

1.      cash a/c     dr.  100000

             to capital a/c      100000

    (being business commenced)

2. purchases a/c   dr. 40000

      to cash a/c         40000

 (being goods purchased)