Question

Mohit has the following transaction prepare accounting equation
A business started with cash RR 100000
B purchase office furniture for office use RR 10000
C cash withdrawn for personal use Rs20000

Answer 1

Answer:

Cash 70000 +Furniture10,000

= Capital 80,000

Explanation:

business started with cash RR 100000

The cash +100,000

The capital +100,000

B purchase office furniture for office

use RR 10000

The cash -10,000

The furniture +10,000

C cash withdrawn for personal use Rs20000

Cash -20,000

Drawings capital -20,000