Question

Q. 24(A Show the Accounting Equation on the basis of the following and present
a balance sheet on the last new equation balances :
() Manu started business with cash 50000
(ii) Bought furniture for 500
(iii) Purchased goods on credit 4000
(iv) Sold goods on cash (cost 3500) for 700
(v) Received rent 200
(vi) Purchased goods for cash 1000
(vii) Withdrew for personal use 700
(viii) Paid to creditors 400
(ir) Paid for salaries 200

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Answer 1

Answer:

i.

Cash account Dr.... 50000

To capital account 5000

ii.

Furniture account Dr.. 500

To cash account.. 500

iii.

purchases account Dr... 4000

To S/c account.. 4000

iv.

Cash account Dr... 700

Loss on sale account Dr.. 2800

To sales account.. 3500

v.

Cash account Dr.. 200

To rent account. 200

vi.

purchases account Dr.. 1000

To cash account 1000

vii.

Drawings account Dr. 700

To cash account 700

viii.

S/c account Dr.. 400

To cash account 400

ix.

Salaries account Dr.. 200

To cash account 200

Explanation:

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