Question

show accounting equations if i commenced business for ₹100000and purchased machinery for ₹70000 and sold all goods for cash ₹60000​

Answer 1

Answer:

cash AC Dr 100000

to capital AC cr 100000

machinery AC Dr 70000

to cash AC cr 70000

cash AC Dr 60000

to sale AC cr 60000

Answer 2

For making an accounting equation u need to mention one more entry of buying goods first before selling as without creating stock how can u sale it ? So i have made entries for 2 transactions only