Question

Show the accounting equation on the basis of the following transactions (a) Started business with cash 1,75,000
(b) Purchased goods on credit 50,000
(c) Sales goods on credit (costing 17,500) 20,000
(d) Purchased furniture for office use 10,000
(e) Cash paid to creditors 18,500
(f) Cash received from debtors 20,000
(g) Rent paid 1,000
(h) Cash withdrew for personal use 3,000
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Answer 1

Answer:

Show the accounting equation on the basis of the following transactions (a) Started business with cash 1,75,000

(b) Purchased goods on credit 50,000

(c) Sales goods on credit (costing 17,500) 20,000

(d) Purchased furniture for office use 10,000

(e) Cash paid to creditors 18,500

(f) Cash received from debtors 20,000

(g) Rent paid 1,000

(h) Cash withdrew for personal use 3,000