Question

prepare a statement showing the accounting equation on th basis following transactions 1) nihara started business with cash 5,00,000 2) purchased goods from nirmal for 60,000
3) paid into bank 75,000
4)sold goods to abi costing 80,000for 1,00,000

Answer 1

1. cash + & capital+
2.stock+ & creditor+
3.cash- , bank +
4.80000 - from stock , 100000 + in debtor, 20000 in capital +

cash,stock,bank,debtor are in assets side and capital,creditor are liabilities side.

may it help u