Question

Solve this Accounting Equation please ☺

Answer 1

HELLO.!!

so here I'm using the formula-> capital+liablity= Assets.

1. in the first equation the business is being started with a capital of rs 70,000. so we will add rs 70,000 in caital and add the same amount in the asset side with a heading of cash (you can see in the picture which i've provided above)
2. In the 2nd equation the good is being purchased in credit so you have to add rs 14000 in the liablity side (as credit is a liablity) and add the same amount in the asset side with the headding stock.
3. In the 3rd equation cash is being withdrawn for personal use so it will be decreased from the capital and same amount will be decreased in cash (you can see in the image above)
4. In the 4th equation goods are being purchased in cash so rs 10000 will be added to stock and rs 10000 will be decreased from the cash.
5. In the 5th equation wages are being paid so the amount of wages i.e. rs 300 will be decreased from the capital and cash as it is an expense.
6. In the 6th equation creditors are being paid so rs 10000 will be decreased from creditor and rs 10000 will be decreased from the cash as well as creditors will be paid by cash.
7. In the 7th equation goods are being sold in credit, so rs 15000 will be decreased from the stock and added to the asset side with a new heading of Debtors.
8. in the 8th equation goods costing rs 3000 are sold at rs 4000 , so rs 3000 will be decreased from stock , 4000 will be added to cash and rs 1000 will be added to the capital side as rs 1000 is gained as profit and profits are added to the capital.
9. in the 9th equation furniture of rs 500 are purchased by cash so 500 will be decreased from cash and rs 500 will be added to the asset side with a new heading "furniture" as it is an asset.

hope this answer helps you.. if you like it you can add it as the brainliest answer.. and if it helped you you can tell me in the comments...

THANKYOU..!!