Question

started business with cash 120000 purchased goods for cash 10000 rent received 5000

Answer 1

Answer:

A Person is in Profit of115000

Explanation:

120,000

-100,00

–––––—

110000

+5000

------------

115000

Answer 2

cash a/c                 Dr.            12000

     to capital                                          12000

(being business started with cash)

purchase a/c          Dr.             10000

         to cash                                       10000

(being goods purchased)

cash a/c                  Dr.            5000

       to rent                                        5000

(being rent received)