Question

Prepare Accounting Equation from the following transactions:
1. Started Business with cash Rs. 1,00,000.
2. Purchased goods on credit Rs. 20,000.
3. Paid for Rent Rs. 700.
4. Goods costing Rs. 4,000 sold for cash Rs. 5,000.
5. Sold goods on credit costing Rs. 5,000 for Rs. 6,000.
6. Paid to creditors Rs. 15,000.
7. Purchase furniture for Rs. 5,000.​

Answer 1

Answer

Business a/c. dr. 100000.

To cash a/c. 100000

(being business started)

Purchased a/c. dr. 20000

To credit a/c. 20000

(being goods purchased)

Rent a/c. dr. 700

To cash a/c. 700

(being rent paid )

purchased a/c. 5000

To cash a/c. 5000

(being furniture purchased)