Question

Give the accounting equation for the following transactions,
Mr. Swaraj commenced business with Bank balance 1,10,000.
Purchased Furniture on credit from S.M Furniture Mart 25,000.
Bought goods on credit from Yuvraj * 15,000.
Purchased Machinery 10,000.
Paid Electricity bill * 3,500.
Goods destroyed by fire 1,500.
​

Answer 1

Explanation:

Bank ac dr 110000

To capital cr 110000

purchase ac dr 25000

To cash ac cr 25000

purchase ac dr 15000

To yuvraj ac cr 15000

Machinery ac dr 10000

To purchase ac cr 10000

Electricity ac dr 3500

To purchase ac cr 3500

Good destroyed by fire ac dr 1500

To cash ac cr 1500

Hope it helps....