Question

Prepare accounting equation from the foolowing:-

1. Sandeep started business with cash Rs. 1,00,000

2.purcshased furniture for cash Rs. 5,000

3. purchased good for Rs. 20,000

4. purchased good on credit Rs. 36,000

5. paid for rent Rs. 700

6. goods costing s. 40,000 sold at a profit of 20% for cash​

Answer 1

Explanation:

Journal entry:

1.capita A/c...Dr. 100000

To Cash A/c. 100000

2.furniture A/c...Dr. 5000

To Cash A/c. 5000

3.Purchase A/c...Dr. 2000

To Cash A/c. 2000

4.Purchase A/c...Dr. 36000

To credit A/c. 36000

5.Rent A/c....Dr. 700

To cash A/c 700

6. Cash A/c ...Dr. 48000

To Sales A/c 40000

To profit A/c. 8000