Question

Show the accounting equations on the basis of the following transactions and present a balance sheet:

(i) Mohan commenced business with 70,000

(ii) Purchased goods on credit 14,000

(iii) Withdrew for private use 1,700

(iv) Purchased goods for cash 10,000

(v) Paid wages 300

(vi) Paid to creditors 10,000

(vii) Sold goods costing Rs. 12,000 on credit 15,000

(viii) Sold goods for cash (cost price Rs. 3,000) 4,000

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Answer 1

Answer:

Explanation:1.cash A/C  dr   70,000

                              to mohans A/C      70,000

2.purchaseA/C  dr  14,000

 to creditors A/C                 14,000

3.cash A/C dr             1,700

to drawing a/c                      1,700

4.purchase A/C  dr      10,000

   to cash A/C                     10,000

5.wages A/C dr         300

    to cash A/C                  300

6.creditors A/C dr    10,000

 to cash A/C                       10,000

7.cash A/C dr   12,000

   to sales A/C             12,000

   creditors A/C  dr      15,000

 to   sales A/C                             15,000

8.cash A/C  dr    7,000

 to sales A/C                 7,000