Question

ILLUSTRATION 3: Sonu had the following transactions:
1. Commenced business with cash 1,00,000 of which he deposited 60,000
in bank
2. Bought goods for cash 30,000 and on credit 40,000.
3. Purchased a machine for 2,00,000 by raising loan from P.N. Bank, Hisar.
4. Sold goods costing 20,000 @ a profit of 20% on cost to Mohan on credit
5. Took goods of 5,000 and cash 4,000 for personal use.
6. Paid interest on loan 4,000 and instalment of bank loan 20,000 by
cheque
7. Commission received in advance 8,000.
8. Mohan returned goods worth * 6,000.
9. Paid 20,000 to creditor by cheque.
10. Mohan settled his account at a discount of 500.
11. Charge depreciation on machine @ 10% for the whole year.
Use accounting equation to show the effect of above transactions.




please also explain 11 ​

Answer 1

Answer:

1) Cash a/c Dr.

to capital a/c

2) goods a/c Dr

to cash a/c