Question

Show the accounting equation on the basis of following transactions:(6)i.Commenced business with Cash Rs. 20,000; Goods Rs. 50,000; Furniture Rs. 30,000; Loan from bank Rs. 10,000.ii.Purchased goods from Raman for Rs. 12,000, half of the payment made in cash.iii.Sold goods for cash Rs. 20,000 (Costing Rs. 19,600).iv.Withdrew cash Rs. 2,000 and goods Rs. 1,000 for personal use.v.Salaries of Rs. 5,000 due to be paid.vi.PaidRs. 5,800 toRaman infull settlement of his dues.

Answer 1

Answer:

( i ) Inventory a/c Dr 50000

Cash a/c Dr. 20000

Furniture a/c Dr 30000

To Loan a/c 10000

To Capital 90000

( ii ) Purchase a/c Dr 12000

To Raman 6000

To Cash 6000

(. iii ) Cash a/c Dr 20000

To sales 19600

To profit 400

( iv ) Drawings a/c Dr 3000

To cash 2000

To purchase 1000

(v) Salary a/c Dr 5000

To outstanding Salary. 5000

(vi). Raman a/c Dr 5800

To cash 5800