Question

Prepare Accounting Equation from the following transactions:
1. Started Business with cash Rs. 5,00,000.
2. Purchase a typewriter for cash for office use Rs. 8,009.
3. Cash withdrew for private use Rs. 5,000 in cash.
4. Purchased goods for cash Rs. 40,000.
5. Sold goods for cash costing Rs. 4,500 at Rs. 5,000.
6. Sold goods on credit costing Rs. 12,000 for Rs. 15,000.
7. Received Commission for Rs. 500.
8. Paid salary Rs. 2,000.​

Answer 1

Answer:

1. cash ac dr

to capital ac cr

(being business started with cash)

2. typewriter ac dr

to cash ac cr

(being purchased typewriter for office use with cash)

3. Drawings ac dr

to cash ac cr

(being cash withdrawn for personal use)

4. purchase ac dr

to cash ac cr

(being purchased goods with cash)

5. cash ac dr

to sales ac credit

(being goods sold for cash)

6. debtors ac dr

to sales ac cr

(being goods sold on credit)

7. cash ac dr

to commission ac cr

(being commission received)

8. salary ac dr

to cash ac cr

(being salary paid)

Explanation:

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