Question

Prepare accounting equation from the following information.(1).business started with cash ₹175000.(2).purchased goods from rohit ₹50000.(3).sales goods on credit to manish(costing ₹17500) ₹20000.(4).purchased furniture for office use ₹10000.(5).cash paid to rohit in full settlement ₹48500.(6).cash received from manish ₹20000.(7).rent paid ₹1000.(8).cash withdraw for personal use ₹3000.

Answer 1

1) asset side cash (+175000) and capital(+175000)
2)asset side stock (+50000)and liability side creditor (+50000)
3) assets side stock (-17500), debtors (+20000) and capital(+2500)
4) asset side furniture(+10000) ,cash (-10000)
5)asset side cash (-48500) and liability side (-50000)and capital(+1500)
6) cash (+20000) ,debtor (-20000)
7) cash (-1000)and capital(-1000)
8)cash (-3000) and capital (-3000)