Question

Shows an Accounting Equation on the basis of the following transactions:
a. D. Mahapatra commenced business with Cash *3,00,000;
b. purchase goods for cash *40,000 and on credit 10,000
c. Sold goods of Costing of 20,000 at 4,000 profit.
d. Cash withdrawn for personal use *20,000.​

Answer 1

Answer:

Assets= liabilities + capital

Explanation:

Cash+ stock= Creditors + capital

1) 3,00,000+0=0+3,00,000

2), 2,60,000+50,000=10,000+3,00,000

3) 2,84,000+30,000=10,000+3,04,000

4) 2,64,000+30,000=10,000+2,84,0000

Drawing reduces capital