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:

Assets =liabilities +capital

Cash+stock+debtors= creditors +capital

1,00,000+0+0=0+1,00,000

80,000+50,000+0=30,000+1,00,000

92,000+25,000+18,000=30,000+1,05,000