Question

Q4. Prepare the Accounting Equation on the basis of the following:
1. Kapil commenced business with of Rs.1,50,000.
2. Goods purchased in cash for Rs.60,000.
3. Purchased furniture of Rs.20,000 from M/S Trendz Furnitures on credit.
4. Received commission of Rs.4,000.
5. Kapil withdrew Rs.7,000 for personal use.
6. Goods costing Rs.8,000 sold for Rs.10,000 in cash.

Answer 1

1 cash a/c ...... Dr.
To capital a/c
2 purchase a/c ... Dr
To cash a/c
3 purchase a/c .. Dr
To m/s trends a/c
4 commission received a/c ... Dr.
To cash a/c
5 Drawings a/c ...Dr
To cash a/c
6 goods costing a/c ... Dr
Cash a/c ... Dr
To sales a/c