Question

 Show the accounting equation on the basic of the following transactions                              8


Started business with cash Rs 6,00,000 and goods Rs 3,00,000.


Purchased goods for cash Rs 4,00,000 and on credit Rs 2,50,000.


Goods costing Rs 4,80,000 sold at a profit of 25%. Three-fourth payment received in cash.


Goods costing Rs 2,00,000 sold at a loss of 5%, out of which Rs 1,20,000 received in cash.


Paid rent Rs 40,000 and salary Rs 60,000.


Received cash from debtors Rs 1,50,000.


Paid telephone bill amounting to Rs 8,000


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Answer 1

Answer:

Prepare Accounting Equation from the following: (a) Started business with Cash ₹ 2,00,000. (b) Purchased goods for Cash ₹ 60,000 and on Credit ₹ 1,50,000. (c) Sold goods for Cash costing ₹ 40,000 at a profit of 20% and on Credit costing ₹ 72,000 at a profit of 25%.

Explanation: