Question

Prove that accounting equation is satisfied in all the following transactions and also prepare a balance sheet :(1) started business with cash 1,20,000. (2) purchased a typewriter for cash for office use 8,000. (3)purchased goods for cash 50,000. (4) purchased goods on credit 40,000. (5)sold goods for credit (costing 60,000) 80,000. (6) paid rent 1,500.(7) paid salaries 2,000. (8) Received commission 800.(9) withdrew in cash for personal use 5,000

Answer 1

Answer:

cash account debit

to capital account