Question

Q. 5 Show accounting equation for the following transactions:
1. Rohit started business with cash 50,000.
2. Bought goods on credit from Manoj * 6,000.
3. Cash purchases * 5,000.
4. Paid wages 3,000 to Casual labour.
5. Sold goods to Santosh 7,000 on credit.
6. Received Commission 1,000 from Vaishali.​

Answer 1

1. Cash a/c Dr.

to Capital a/c

2. purchase a/c. Dr.

to Manoj's personal a/c

3. purchase a/c Dr.

to cash a/c

4. Wages a/c. Dr.

to trading a/c

5. Santosh's personal a/c. Dr.

to sales a/c

6. Cash a/c Dr.

to commission a/c

( if commission is a business income)