Question

Prepare accounting equation from following transactions:
1) sumit started business with cash - 50,000.
2) purchased furniture for cash - 6,000.
3) bought goods from ram on credit - 15,000.
4) withdrew cash 4,000 and goods for 5,000 for personal use.
5) sold goods costing 8,000 at a profit of 25% .
6) paid to creditors - 10,000.
7) received interest - 2,000.

Answer 1

transaction 1
assets                                                          = liabilities                      +capital

cash     + furniture  + stock                             creditors
50,000                                                                                                   50,000
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50,000                                                                                                   50,000
transaction 2
-6000       + 6000
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44,000      + 6000                                                                                 50,000
transaction 3
                               + 15000                                     15000
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44,000      +6000    + 15000                            =         15000           + 50,000
transaction 4
 -4000                        -5000                                                              -  9,000
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40,000      + 6,000  + 10,000                          =           15000         + 41000
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transaction 5
+10,000                     -8000                                                                +2000
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50,000  +  6,000     + 2,000                         =             15000           + 43,000
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transaction 6
-10000                                                                        -10000
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40000 + 6000   + 2000                               =               5000             + 43,000
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transaction 7
+ 2000                                                                                               +2000
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42000  + 6000  + 2000                                =              5000         + 45000
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Answer 2

Answer:

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