Q. 1. Prepare Accounting Equation from the following :-
1. Sandeep started business with Cash -1, 00,000
2. Purchased furniture for cash- 5,000
3. Purchased goods for cash-20, 000
4. Purchased goods on credit-36, 000
5. Paid for rent-700
6. Goods costing 40,000 sold at a profit of 20% for cash
Solve it urgently.
Answers
Answer:
1-Cash a/c. Dr
To capital a/c
(being sandeep started business with cash)
2-Furniture. a/c. Dr
To cash a/c
(being purchased furniture for cash)
3- purchases. a/c. Dr
To cash. a/c
(being goods purchased for cash)
4- purchases a/c. Dr
To creditor a/c
(being goods purchased on credit)
5-rent. a/c. Dr
To cash. a/c
(being rent paid)
6-cash. a/c. Dr
To sales a/c
(being goods sold for profit)
Explanation:
1-cash-real a/c-debit-what comes in,
capital- personal a/c -credit-credit the giver
2-furniture-real a/c-debit-what comes in
cash - real a/c - credit - what goes out
3-purchases- real a/c -debit- what comes in
cash -real a/c - credit- what goes out
4-purchases-real a/c-debit-what comes in
creditor- personal a/c - credit - credit the giver
5-rent-nominal a/c- debit- All expenses and losses
cash -real a/c - credit-what goes out
6-cash- real a/c-debit-what comes in
sales- real a/c - credit- what goes out
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