Question

Prove that accounting equation is satisfied in all the following cases:

i)Commenced business with cash Rs. 50,000 and computers Rs.20,000

ii) Paid rent Rs.4,000 including Rs. 1,000 as advance

iii) Bought goods for cash Rs. 30,000 and on credit Rs. 20,000

iv)Sold the goods bought on credit for Rs. 25,000.

v) Purchased furniture worth Rs. 10,000 for office use and for Rs. 5,000 for domestic use.

pls answer correctly in tabular form asap.pls.​

Answer 1

Answer:

       ASSETS                                                                        =    CAP+   LIAB

CASH + COMPUTER +PREPAID + GOODS +DEBTOR

                                        RENT                              + FURN

1) 50000 + 20000                                                            = 70000

2) (4000)                     +1000                                               (3000)

NEW

EQ   46000 +20000 +1000                                              = 67000

3)   (30000)                            +30000

                                               + 20000                                               +20000

NEW

EQ    16000 + 20000 +1000 +50000                              = 67000 +20000

4)                                             (25000)      +25000

NEW

EQ   16000 +20000 +1000 +25000 +25000                = 67000 +20000

5)   (15000)                                                      +10000           (5000)

NEW

EQ   1000 +20000 +1000 +25000 +25000 +10000 = 62000 +20000

Explanation:

Answer 2

Answer:

show the accounting equation is satisfied in the following cases