Question

Goods costing Rs.10,000 are sold at a profit Of 20% to Amit. 1/3 of the payment is received in cash.

How will it effect the Accounting Equation.

(a). Cash, Stock, Capital
(b) Cash, Stock, Creditor
(c) Cash, Debtor, capital
(d) Cash, Stock, Debtor &

Capital​

Answer 1

(d)

10000 (stock)

10000*20/100 = 2000(profit = added in capital)

S.P. = 12000

1/3 of 12000 = 4000 (received in cash)

12000-4000= 8000 (due from Amit)