Question

Prepare accounting equation from following transaction (a) started business with cash rs 60000 and good rs 30000. (b) purchased goods for cash rs60000 and on credit rs 25000. (c) goods costing rs 48000 sold at profit 33 1/3% three fourth payment received in cash. (d) goods costing rs 20000 sold at a loss of 5% out of which rs 12000 received in cash. (e) paid rent rs4000 and salary rs 6000. (f) received cash from debtors rs 15000. Paid telephone bill amounting to rs

Answer 1

Answer:

A. Cash A/c Dr. 60000

purchase A/c dr. 30000

To capital A/c. 90000

Being business started with cash and goods .

B.

purchase A/c. Dr.. 85000

To cash A/c 60000

To credit A/c 25000

Being goods purchase in cash and half on credit