Question

prepare accounting equations on basis of the following
1. Rahim started bussiness with cash 200000.
2. furniture purchased for cash 20000
3. rent paid in cash 2000
4. purchased goods on credit 30000
5. sold goods for 25000 cash

Answer 1

1. business a/c dr 200,000

to cash a/c 200,000

2. furniture a/c dr. 20000

to cash 20000

3. rent a/c dr 2000

to cash 2000

4. purchase a/c dr 30000

to creditor. 30000

5. cash a/c dr. 25000

to sale 25000