Question

prepare accounting equations from the following a) started business with cash rs 1,00,000 be) purchased goods for cash rs 20000 and on credit rs 30000 c) sold goods for cash costing rs 10,000 and on credit costing rs 15,000 both a profit of 20 %.​

Answer 1

a. cash account. Dr. 1,00,000

to Capital account. 1,00,000

b. purchase account. Dr. 20,000

cash account. 20,000

purchase account. Dr. 30,000

to credit account. 30,000

c. cash account. Dr. 12,000

purchase account. Dr. 10,000

sales account. 12,000

cash account. 10,000

cash account. Dr. 18,000

purchase account. Dr. 15,000

. to sales account. 18,000

to cash account. 15,000