Question

show The following transactions in acoounting equation:
(a) Started business with cash rupees 3,00,000 and goods 1,00,000 .
(b) Purchase goods for rupees 10,000 on credit.
(c) Paid wages rupees 2,000.
(d)goods costing rupees 12,000 was sold for rupees 15,000 .

Answer 1

Cash Account dr.300000

Purchase account dr ..100000

• To capital account.......400000

( being start business with cash and goods purchased )

Purchase account dr.10,000

• To creditors account...10000

( being goods purchased on credit )

Wages account dr 2000

• To cash account ...2000

( being wages paid )

cash account dr 15000

• to profit account .3000
• to sales account ...12000

( being goods sold on profit )