Question

how the accounting equation for the following transactions-
Mr. Mehta started business with 80,000
Purchased goods on credit from Ashwin 12,000.
Purchased Furniture from S.M Furniture Mart on credit 16,000
Sold goods to Anand worth $10,000.
Withdrew cash for personal use 2,500
Sold goods costing 12,000 at profit of 2,000.
ution :
Transaction
Assets).
Li​

Answer 1

Answer:

Total amount is

1,22,500

Answer 2

Answer: $1,22,500$

Journal Entries-

Cash Acc(Dr) 80,000

To capital Acc(Cr)- 80000

(being Mr Mehta started the business)

Purchased Acc(Dr) 12000

To Ashwin Acc(Cr) 12000

(Being purchased goods on credit from Ashwin)

Purchased Acc(Dr) 6000

To Cash(Cr) 6000

(Being purchased furniture on credit)

Cash Acc(Dr) 10000

To capital Acc(Cr) 10000

(being sold goods to Anand)

Bank Acc(Dr) 2500

To Cash (Cr) 2500

(Being personal use)

Cash Acc (Dr) 12000

To Profit Acc (cr) 12000

(Being sold goods costing)

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