Question

ILLUSTRATION 3.
Prepare 'Accounting Equation' from the following:
(a) Started business with cash 1,00,000.
(b) Purchased goods for cash 20,000 and on credit 30,000.
(c) Sold goods for cash costing 10,000 and on credit costing *15,000 both at
a profit of 20%
(Chandigarh, 2018)

Answer 1

Answer:

a) cash a/c Dr 100000

To capital a/c. 100000