Question

Show the effect of following transaction on the accounting equation :
1. Imran commenced business with cash ₹1,20,000.
2. Purchased goods on credit ₹20,000.
3. Purchased machinery for ₹18,000.
4. Sold goods (costing ₹11,000) for ₹13,000.
5. Sold machinery (costing ₹15,000) for ₹14,500.
6. Cash paid to creditorsy₹17,000.​

Answer 1

Explanation:

Imran commenced business with cash ₹1,20,000. 2. Purchased ... ₹ 20,000. 3. Purchased machinery for ₹18,000. 4. Sold goods (costing ₹11,000) for ...