Question

prepaid accounting equation from the following. a.kanal started business with cash 250000 b.he purchased furniture for each 35000. c.he paid commission 2000 . d. ​

Answer 1

Answer:

Question 4:

Prepare Accounting Equation from the following:

(₹)

(a)

Kunal started business with cash

2,50,000

(b) He purchased furniture for cash 35,000

(c) He paid commission 2,000

(d) He purchased goods on credit 40,000

(e)

He sold goods (Costing ₹ 20,000) for cash

26,000

ANSWER:

ACCOUNTING EQUATION

S. No. Transaction Assets = Liabilities + Capital

Cash + Furniture + Stock = Creditors

(i) Kunal started business with cash +2,50,000 + 2,50,000

2,50,000 = 2,50,000

(ii) Purchased furniture for cash –35,000 +35,000

2,15,000 + 35,000 = 2,50,000

(iii) Commission paid –2,000 -2,000 (Expense)

2,13,000 + 35,000 = + 2,48,000

(iv) Purchased goods on credit +40,000 +40,000

2,13,000 + 35,000 + 40,000 = 40,000 + 2,48,000

(iv) Sold goods costing Rs 20,000 for Rs 26,000 +26,000 –20,000 +6,000 (Profit)

2,39,000 + 35,000