Question

Show accounting equation on the basis of following transactions
A). Harish started business with cash rupee 15000
B). Purchased goods on credit rupee 7000
C). Purchased furniture for rupee 500
D). Diposited into bank rupee 2000
E). Sold goods on credit to satish ( costing rupee 4000) for rupee 6000
F). Withdrew cash for private use rupee 200
G). Paid salaries rupee 300

Answer 1

Answer:

Since Harish started his business with RS 15000/- it is his asset. He purchased furniture for Rs 500 in cash and purchased goods worth Rs 7000 in credit.

So his stock is of Rs 2500/- with credit of Rs. 7000/-. He deposited Rs 2000/- in the bank. So his assets are now 17000/-.

He sold goods worth 4000 in credit to credit for 6000/-. So his credit balance is Rs 1000/- now. He also paid the salary of 300 and withdrew 200/- for personal use.  Therefore his capital is 16500/-.

Explanation:

Answer 2

Answer:

sold good on credit to satish costing 4000 for 6000