Question

Prepare accounting equation? 1.Raman started business with 2. Purchased good from sunil worth rs 60000 and paid half of the same by cash 3. Sold 50% goods purchased from sunil at a profit of 25% to shakti.

Answer 1

1. create cash column in assets side and create capital column in capital side ....add the given amount in both side.

2.create stock column in assets side and add rs60000,then subtract rs30000 from from cash column and create creditor column in liabilities side and add rs30000.

3. subtract rs30000 from stock,then add rs 37500 in cash column and also add rs7500 in capital column.