Question

Q. 29. Prepare accounting equation from the following:
(1) Started a business with cash 1,00,000 and goods worth 20,000
(1) Sold 50% of above goods at a profit of 2,000 on credit to Ram
(ii) Rent paid 5.000.
(iv) Ram paid 50% of his balance in cash,
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Answer 1

Answer:

Journals:

1) Cash A/c ....Dr. 100000

Asset A/c ....Dr. 20000

To Capital A/c 120000

(Being cash introduced as capital)

1) Cash A/c ....Dr. 6000

Ram A/c ....Dr. 6000

To Sales A/c 12000

(50% of 20000 + 2000)

(Being goods sold at profit of 2000)

ii) Rent A/c ....Dr. 5000

To Cash/BankA/c 5000

(Being Rent paid)

iv) Adjusted in journal no. 1)