Question

Q.2) Show the accounting equation on the basis of the following transactions:


1 Dinaz Pastakia started business with cash Rs.50,000.

2 Purchased building for cash Rs.20,000.

3 Paid into bank Rs.10,000.

4 Sold goods for cash Rs.40,000 costing Rs.30.000.​

Answer 1

Answer:

1. Cash = +50,000

equity = +50,000

2. building /stock = +20,000

cash. = - 20,000

3. Bank/ creditors = - 10,000

cash. = - 10,000

4. stock = - 40,000

cash = +10,000

equity = +10,000

___________________________________

I hope that this answer is useful to you. Thank you