Question

Rohit has the following transactions :
(a) Commenced business with cash
1, 50, 000
(bl Purchased machinery on credit
40,000
(c) Purchased goods for cash
20,000
(d) Purchased car for personal use
80,000
(e) Paid to creditors in full settlement
38,000
(1) Sold goods for cash costing 5,000
4, 500
(g) Paid rent
1000
(h) commission received in advance
2000
2,000
(h) Commission received in advance
Prepare the Accounting Equation to show the effect of the above transactions​

Answer 1

Answer:[a]cash a/c dr 1,50,000

                 To capital a/c 1,50,000

[b]purchases a/c dr 40,000

   To mchinery a/c 40,000

[c]goods a/c dr 20,000

   To cash a/c 20,000

[d]car a/c dr 80,000

   To drawing a/c 80,000

[e]creditors a/c dr 38,000

   To cash a/c   dr 38,000

[f]cash acc dr  5000

  to good's sales a/c 5000

[g]rent a/c dr 1000

  To cash a/c 1000

[h]comm recieved a/c dr 2000

   To comm recieved in advance2000

you can prepare acc equation with the following formula:

[h]Accounting equation=assets=liabilities+assets