Question

Show the impact of the following transactions on the Accounting Equation. (6) i. Mohan started business with cash Rs 80,000 and goods Rs 50,000. ii. Purchased goods for cash Rs 50,000 and on credit Rs 30,000. iii. Goods costing Rs 57,000 sold at a profit of 20%. Three-fourth payment received in cash. iv. Goods costing Rs 40,000 sold at a loss of 10%, out of which Rs 20,000 received in cash. v. Paid rent Rs 14,000 and salary Rs 26,000. vi. Received cash from debtors Rs 25,000. vii. Paid telephone bill amounting to Rs 2,000.

Answer 1

assets= liabilities + capital