Question

Prepare the Accounting Equation on the basis of the following:
1. Rakesh commenced business with cash. Rs 1,50,000
2. Furniture purchased for cash . Rs 20,000
3. Purchased goods from Mahesh on credit. Rs 25,000
4. Sold goods (costing Rs 10,000) to Mohan for cash. Rs 14,000
5. Additional Capital introduced. Rs 20,000
6. Commission received in advance. Rs 2,000
7. Paid to creditor (Mahesh) in full settlement. Rs 22,500
8. Sold goods (costing Rs 15,000) for Rs18,000 out of which Rs 5,000 received in cash.
9. Depreciation on furniture provided @ 10%.​

Answer 1

Answer:

1. Capital A/c Dr. 150000

To Cash A/c 150000

2. Furniture A/c Dr. 20000

To Cash A/c 20000

3. Purchase A/c Dr. 25000

To Mahesh 25000

4. Cash A/c Dr. 14000

To Sales A/c 14000

5. Capital A/c Dr. 20000

To Cash A/c 20000

6. Cash A/c Dr. 2000

To Commission A/c 2000

7. Mahesh Dr. 22500

Discount Received A/c Dr. 2500

To Cash A/c 25000

8. Cash A/c Dr. 5000

Debtor Dr. 13000

To Sales A/c 18000

9. Depreciation A/c Dr. 2000

To Cash A/c 2000

( 10% of 20000 = 2000)