Question

prepare accounting equation from the following * commenced business with cash 500000 * purchased goods 25000 * paid salary 10000 * sold goods costing 20000 at a profit of 25•/• on the cost * paid salary in advance 2000 * introduced additional capital 10000 * purchased computer 15000 * Deposited 50000 into the bank.​

Answer 1

Attachment -1 : Accounting equation

Attachment -2 : Working note

Answer :-

Assets :

• Cash = ₹ 4,33,000
• Stock = ₹ 5,000
• Bank = ₹ 50,000
• Advanced paid = ₹ 2,000
• Computer = ₹ 15,000

Capital :

• Closing capital = 5,05,000

Liabilities :

• Liability = Nil

Accounting equation, Assets = Capital + Liabilities is satisfied here.