Question

Sold goods costing Rs.95,000 for Rs. 1,05,000. Identify the correct effect in
accounting equation.
Increase cash by Rs. 1,05,000, Decrease capital by RS. 10,000 and decrease goods by
Rs. 95,000
Increase Capital by Rs. 10,000, increase cash by Rs. 1,05,000 and decrease goods by
Rs.95,000.
Increase goods by Rs. 1,05,000 and decrease stock by Rs. 1,05,000.
Decrease goods by Rs, 105,000, increase cash by 95,000 and increase capital by Rs.
1,05,000.

Answer 1

Answer:

Increase capital by ₹10000, increase cash by ₹ 105000, and decrease goods by ₹ 95000.