Question

Prepare Accounting equation from the followings.
(a) Started business with cash 360,000.
(b) Purchased goods for cash 80,000 and on credit 180,000.
(c) Sold goods for cash costing 60,000 at a profit of 20% and on credit costing 80,000 at a Profit of 25%.
(d) Paid for Rent 5000.
(e) Commission received 4000.
() Purchased furniture for office use 6000 and for household use of
(@) Goods destroyed by fire 2500.
(h) Goods costing 20,000 sold at a Profit of 25% out of which 12500
received in cash.​

Answer 1

Answer:

(a)_cash a/c Dr. 3,60,000

to capital a/c. 3,60,000

(b)_ purchaseses a/c. Dr. 2,60,000

to cash a/c 80,000

to crediters a/c. 1,80,000

(d)_rent paid a/c. Dr. 5,000

to cash a/c. 5,000