Question

Prepare accounting Equation and Balance sheet. On the basis of

following information. (6)

1. Business started with cash 1,75,000

2. Cash withdraw for personal use 3,000

3. Purchased goods from Amit 50,000
4. Sold goods on credit to Annu (costing Rs 17,500) 20,000

5. Cash paid to Amit in full settlement 48,500

6. Rent paid 1000

7. Cash received from Annu 20,000

8. Purchased furniture for office use 10,000​

Answer 1

Explanation:

(ii) Purchased goods for Cash ₹ 5,000 and on credit ₹ 2,000 ... Prepare an Accounting Equation and Balance Sheet on the ... (i) Started business with cash ₹ 1, 00,000.