Question

Prove that the accounting equation is satisfied in all the following transactions f Sumit: 1. Commenced business with cash 60,000 ii. Paid rent in advance 500 Purchases goods for cash 30,000 and on credit 20,000 iv. Sold goods for cash 30,000, costing 20,000 V. Paid wages 500 and wages outstanding 100 vi. Charge interest on drawings 2,000 vii. Bought vehicle for personal use for 15,000. viii. Allow interest on capital of 3,000​

Answer 1

Answer:

cash account dr.

to capital account

2.rent account dr.

to cash account

3.purchase account dr.

to cash account

4.purchase account dr.

to creditor account