Question

Prepare accounting equation on the basis of the following
a) harish started business with cash ₹ 2,00,000.
b) purchased goods from naman for cash ₹. 1,40,000.
c) sold goods to bhanu costing ₹. 10,000.​

Answer 1

Answer:

Debit. Credit

a). cash a/c 2,00,000.

To capital a/c. 2,00,000

b) Purchase a/c 1,40,000

To Naman a/c. 1,40,000

c). Bhanu a/c 10,000

To sales a/c. 10,000

Explanation:

It's simple. All these are based on the golden rules of accounting.

Debit all the expenses and credit all the incomes.