Question

Show the accounting equations on the basis of the following transactions:
(i) Rehman commenced business with cash 50,000.
(ii) Purchased goods on credit 18,000.

(iii) Withdrew cash for private use 12,000.
(iv) Goods costing * 10,000 sold on credit for 9,000.
(v) Purchased machinery for 20,000.
(vi) Purchased goods for cash 6,000.​

Answer 1

Assets : Cash Rs. 40,700 + Stock Rs. 5,000 + Furniture Rs. 40,000 +Debtors Rs. 65,000 = Liabilities : Creditors Rs. 10,000 + Capital Rs. 1,40,700