Question

RO
Q4. Prepare accounting equation for the following transaction.
1. Amar started business with cash
Rs. 80,000
Buildings
Rs. 10,000
Stock
Rs. 10,000
2. Interest on the above capital was allowed 10%.
3. Money withdrawn from the business Rs. 10,000
For his personal use & goods withdrawn Rs. 5000
4. Depreciation charged on machinery Rs. 2000​

Answer 1

1. cashA/c Dr. 80000

Building A/c Dr. 10,000

stock. A/c. Dr. 10,000

to capital A/c. 1,00,000

2. Interst on capital A/c Dr. 10,000

to partners capital A/c. 10,000

3.cash A/c Dr. 10,000

to Drawings A/c. 5000

to office equipments 5000

4.cash A/c Dr. 2000

to dep. on mechinary A/c. 2000