Question

Prepare The Accounting equation on the basis of the following transaction:
1) started business with cash Rs 80000 and Rs. 30000
2) credit purchase of goods Rs. 20000 From M/s SL Ltd
3) payment made to creditors in full settlement Rs. 18000
4) Purchase of machinery for Rs. 120000 out of which 20000 paid in cash
5) depreciation on machinery Rs. 10000​

Answer 1

Assets = capital + liability

202000 = 102000 + 100000

202000 = 202000