Question

Show the accounting equation on the basis of following
1)Ram started business with cash 250000
2)purchase goods from Shyam 100000
3)sold goods Sohan (cost 18000) 20000
4)Ram withdrew cash from business for personal use 50000

Answer 1

(1) Cash A/c Dr .2,50,000

• To Ram capital A/c .2,50,000

(Being ram started business with cash )

(2) purchase A/c dr 1,00,000

• To shyam ...,........1,00,000

( being goods purchased on credit)

(3)Sohan A/c dr .20,000

• To profit ..........2,000
• To Sales A/c ...18,000

(Being goods sold to sohan on profit )

(4) Drawings a/c .dr 50,000

• To cash A)c .........50,000

( being withdrew cash for personal use )