Question

Show that accounting equation is satisfied in the following cases1.Ajay commenced with cash ₹40,000 and goods ₹20,0002. Sold half the goods at a profit of 25% to Ram.3. Sold half the goods at a loss of 10% for cash.4. Bought goods from Rakesh ₹ 25,000 and paid ₹ 9000 in cash.5. Bought furniture ₹ 7,000 for office use and for ₹ 3,000 for domestic purpose.6. paid insurance premium ₹ 1,000 of which ₹200 is prepaid. ​

Answer 1

Answer:

Explanation:

1.) Cahs + 40000 stock +20000 capital +60k

2.) Stock -10k cash+12.5k capital + 2.5 k

3.) Stock -10k cash + 9k capital - 1k

Answer 2

Explanation:

a) Cash 40000 stocks 20000 debtor 0 furniture 0

= creditor 0 capital 60000

b)Cash 0 stock -10000 debtor 12500 furniture 0= creditor 0 Capital 2500

c)Cash-1000 stock -10000 debtor 0 " 0 =creditor 0 capital-11000

d)Cash-9000 "+25000"+0"+0= +6000"+0

e)-3000+0+0+7000= 0+4000

actually the last entry plz check

thanks