Question

Prepare accounting equation for the following transaction
1.Ajay commenced business with cash 40000 and goods 20000
2. Sold half the goods At a profit of 25% to ram
3. Sold half the goods at a loss of 10% for cash
4. Bought goods from rakesh Rs. 25000 and paid 90000 in cash
5. Bought furniture Rs.7000 for office use And RS. 3000 for domestic use

Answer 1

Explanation:

1. cash a/c dr. 40,000

goods a/c dr.20,000

to capital a/c 60,000

2. sales a/c dr. 10,000

profit a/c dr. 2,500

to ram a/c 12,500

3. cash a/c dr. 10,000

loss a/c dr. 1000

to sales a/c 11,000

4. rakesh a/c dr. 1,15,000

to goods a/c 25,000

to cash a/c 90,000

5.