Question

Show the accounting equation on the basis of following transaction and prepare

a balance sheet on the basis of last equation

1. Opening Balance: Cash ₹ 20000, Bank ₹ 5000, Creditors ₹ 5000, Capital ₹

50000, Stock, ₹ 20000, Debtors ₹ 10000.

2. Purchased goods for cash ₹ 7500 and credit for ₹ 5000.

3. Goods costing ₹ 10000 sold at 20% profit , half of the amount received in cash.

4. Cash stolen away ₹ 5000

5. ₹ 6000 for commission received in advance.

6. Bad debts ₹ 500
please help ​

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%.