Question

Start business with cash RS. 1,00,000 , purchase goods an credit RS. 4000, purchase goods for cash RS. 1000 , withdraw cash for private use RS. 850 prove that the accounting equation is satisfied in all the following transaction

Answer 1

Answer

1.cash 100000

To capital 100000

2. purchase 40o0

To creditor 4000

3. Purchase 1000

To goods 1000

4. Drawings 850

To cash 850