Question

Prepare an accounting equation from the following: (1). Business started with cash Rs. 75,000,goodsRs.30,000,Machinery Rs.50,000 ;furniture Rs/ 25,0000 (.2).1/3 rd of above goods sold at a profit of 10% on cost and half of the payment is received in cash. (3)Depreciation on Machinery provided at 10%. (4)Cash withdrawn for personal use Rs.10,000 (5)Interest charged on drawing @ 5%. (6) Goods sold to Jackob for Rs. 5,000 and received a bills receivable .(7) Outstanding salary Rs. 5,000. Rent Rs. 10,000,​

Answer 1

Answer:

Explanation:

Cash a/c. Dr. 75,000

Purchases a/c. Dr. 30,000

Machinery a/c Dr. 50,000

Furniture a/c. Dr. 250000

To capital a/c. 405000

Debtors a/c. Dr. 16500

Cash a/c. Dr. 16500

To sales a/c. 33000

Depreciation a/c. Dr. 5000

To machinery a/c. 5000

Drawings a/c. Dr. 10000

To cash a/c. 10000

Drawings a/c. Dr. 500

To interest on drawings a/c. 500

Bills receivable a/c. Dr. 5000

To Jacob. A/c. 5000

Salary a/c. Dr. 5000

Rent a/c. Dr. 10000

To o/s salary a/c. 5000

To o/s rent a/c. 10000

Hope it helps you.