Question

Prepare the Accounting Equation from the following transactions:
a. Mr Fazal started a business with cash Rs 2,00,000 and a cheque of Rs.1.,00,000
b. He purchases goods worth Rs.50,000 for cash and worth Rs30,000 for credit from M/s
Alliance Traders.
c. He sold 50% of goods at a profit of 20% on cost.
d. He paid salary Rs10,000 by cheque and have an outstanding salary is
Rs. 2,000.
e. He has taken goods worth Rs. 2,000 for his personal use..
f. He is having an Accrued interest of Rs 3,000 and he has received commission of Rs 5,000 in
advance.

Answer 1

Answer:

Explanation:

                A           = L        +   C

Cash = 200,000                    2,00,000

Cash   - 50000      +50000 (stock)     = 0

                              + 30000                     = 30000 Creditor

Stock value 40000    48000 ( Cash)      = 8000 capital