Question

Q-3 Prepare accounting equation from the following:-1. Started a business with cash Rs 1,00,000 and goods Rs 20,000.2. Sold 50% of above goods at a profit of Rs 2,000 on credit to Ram.3. Rent paid Rs 5,000.4. Ram paid 50% of his balance in cash.​

Answer 1

Answer:

1) Debit Cash 100000 and Credit Capital

Goods Debit and Credit Cash account

2) Cash Debit 12000 and Credit Sales (10000) and Profit on sales credit (2000)

3) Rent paid Debit and Cash Credit

4) Cash Debit and Ram account credit