Question

Question class 11 accounts prepare accounting equation on the basis of following transaction. 1.started business with rs 1,00, 000. 2.credit purchase of goods 60,000 3.goods purchase for cash for rs 20,000. 4.purchase of machinery for cash rs 35,000 5.paid salary of rs 6,000

Answer 1

Answer: total assets = goods + cash + machinary

                                  = 80000 +35000 + 39000

                                  = 154000

creditors = 60000 (purchase goods in credit)

capital = ?

ACCOUNTING EQUATION :------------

 TOTAL ASSETS = CAPITAL + CREDITORS

 154000 = CAPITAL + 60000

  154000 -  60000 = CAPITAL

  94000 =  CAPITAL

Explanation:

CASH = 100000 - 20000 - 35000 - 6000

            = 39000