Question

Q. 8. Prepare the Accounting Equation on the basis of the following:
(a) Started business with cash 1,40,000 and Stock 52,50,000.
(6) Sold goods (costing 50,000) at a profit of 25% on cost.
(c) Deposited into bank account 1,80,000.
(d) Purchased goods from Mohan 80,000.

Answer 1

Explanation:

stock account Debit 525000

cash account Debit 140000

To capital account 5390000