Question

Prepare Accounting Equations on the basis of the following :

i) Rahim started business with cash Rs. 20,000

ii) Rahim purchased goods on credit Rs. 3,000

iii) Rahim sold goods (costing Rs. 2,000) for Rs. 5,000 in cash.​

Answer 1

Explanation:

20000asset(cash)=20000(capital)

3000(goods)=3000(creditors)

-2000(goods)+5000=3000(capital)

so 26000=26000

asset=liability