Question

Q- Monu had the following transactions
1. Started business with cash - 100000
2. Deposit cash into bank - 60000
3. Bought a machine by raising a bank loan -50000
4. Bought goods for cash 20000 and on credit - 40000
5. Goods bought for cash was sold to amit - 25000
6. Amit returned goods worth - 5000
7. Amit settled his account by paying - 19500
8. Paid instalment of bank loan 20000 and paid interest by cheque 2000
9. Charge 10% deprection on machine
Use accounting equation to show effect of above transaction

Answer 1

Explanation:

amit returned goods worth 5000

Answer 2

Explanation:

Started business with cash - 100000

2. Deposit cash into bank - 60000

3. Bought a machine by raising a bank loan -50000

4. Bought goods for cash 20000 and on credit - 40000

5. Goods bought for cash was sold to amit - 25000