Question

Show the accounting equation on the basis of following transaction and prepare a balance sheet on the basis of last equation

1 Ram started business with cash 30000
2 purchase good for cash 10,000
3 brought furniture for cash 5000
4 broad goods on credit 15500
5 paid rent 1500
6 sold good costing 8000 for cash
11000

Answer 1

Asset = Liability + Capital

Assets = Furniture 5000 + Cash 24500
Liability = Creditors 15,500 + Loss (-16000)
Capital = 30000

29500=29500