Question

Prepare Accounting Equation from the following: a) Started business with cash ₹50000 and goods ₹30000. b) Purchased goods for cash ₹30000 and on credit from Karan ₹20000. c) Goods costing ₹40000 was sold for ₹55000 cash. d) Withdrew cash for personal use ₹10000.​

Answer 1

Answer:

(cash = 65,000 + stock= 40,000 )= 105,000 in assets side

capital and liabilities side

1. capital ( drawing) = 85,000 and liabilities (creditors) = 20,000 = 105,000

assets side = 105,000 and capital+liabilities= 105,000

both sides are equal