Question

Prepare by accounting equation commenced busines with cash 80,000
bought goods from ram on credit 20,000
paid cash to ram 15,000
paid rent 16,000 and salary 4,400
sold goods costing 10,000 for 13,000 to mohan.
received cash from mohan 10,000.
withdrew cash 4,000 and goods 5,000 for personal use.
goods returned to ram 2,000

Answer 1

Answer:Commenced bussiness with cash means ,debit cash a/c and credit capital a/c .bough goods from ram on credit , that is increase goods and also increase liability . sold goods costing 10000 ffor 13000 to mohan means , there is a profit of rs 3000 , it will add to capital account and goods decreased by 10000 and cash decreased by 13000.

Explanation:

withdrew cash and good will deduct from capital a/c

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