Question

Prepare Accounting Equation from the following Information : (1) Started business with cash 1,00,000, goods 40,000 and furniture 60,000. (2) Purchased goods for cash 20,000 and on credit 30,000. (3) Goods costing 24,000 sold at a profit of 25% and only 60% amount received in cash. (4) Furniture costing 20,000 sold at a loss of 10%. (5) Amount paid to creditors Rs. 18,000 in full settlement of Rs. 20,000. (6) Amount received from debtors 4,000 in full settlement of 5,000. (7) Salary paid 5,000 and outstanding salary 4,000. (8) Insurance premium paid 12,000 (Including 3,000 in advance) (9) Additional capital introduced 25,000 (10) Depreciation charged on furniture 8,000. (11) Goods withdrawn for personal use 5,000.​

Answer 1

Explanation:

1)cash a/c dr. 100000

stock a/c dr 40000

furniture alc dr. 600000

to capital a/c. 200000

2)purchased alc dr 20000

to cash alc 20000

11)drawings a/c. dr. 5000

to cash a/c. 5000

7)salaries a/c dr 5000

to cash alc 4000