Question

Prepare the accounting equation on the basic of following 1. Kapil commenced business with rs. 1,50,000. 2. Goods purchased in cash for rs.60,000 .3. purchased furniture of rs. 20,000 from M/S trendz furnitures on credit.4. received commission of rs . 4,000 .5. kapil withdrew rs. 7,000 for personal use.6. goods costing rs. 8,000 sold for rs . 10,000 in cash.

Answer 1

1 cash AC db to capital 150000
2 purchase account debit to cash account
3 purchases account debit to M / S trendz Furniture

Answer 2

Answer:

Assets side = 1,69,000 (total)

Liability side= 1,69,000 (total)

(if Balance Sheet is asked in question)