Question

Q5. Prepare Accounting Equation from the following:-(i) Suresh started business with cash. Rs. 80,000 (ii) Purchased goods for cash Rs. 28,000 (iii) Sold goods on credit Rs. 40,000 (Cost price Rs. 30,000) (iv) Paid rent Rs. 2,000​

Answer 1

Answer:

Particulars. debit rs. Credit rs

I). Cash A/c. dr. 80000.

To proprietor A/c 80000

(Business was started)

II). Purchases A/c. dr. 28000

To cash A/c. 28000

(Goods are sold)

III) Cash A/c dr. 30000

Profit A/c. dr. 10000

To Sales Alc 40000

(Goods sold with

profit)

IV) Rent A/c. dr. 2,000

To Cash A/C. 2000

(Rent is payase)

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