Prepare an accounting equation and balance sheet from the following transactions:
1. Commenced business with cash 50,000 and goods 50,000.
2. Sold half the goods at a profit of 20% to Gopal 3. Bought goods for cash 20,000 and on credit 25,000
4 Bought furniture on credit 25,000 from Mohan
5. Paid 24,500 to Mohan in full settlement of his account. 6. Withdrew cash 3,000 and goods for 7 4,000 for peronal use.
7. Charge interest on drawing 500.
Answers
Answer:
Assets=Capital+Liabilities
73,500=48,500+25,00
73,500=73,500
Explanation:
Assets = Capital + Liabilities
cash. stock furn.
50,000 50,000
-20,000. 20,000
25,000 25,000
27,000 -22,500 4,500
25,000 25,000
-3,000 -4,000 -7,000
-24,500 500 -25,000
500 500
------------------------------------------------------------------------
30,000+18,500+25,000 = 48,500 + 25,000
------------------------------------------------------------------------
Hence proved . Hope this helps