Started business with cash Rs1200000
Purchased goods for cash Rs 10000
Rent received Rs5000
Salary outstanding Rs2000
Pre-paid insurance Rs1000
Received interest Rs700
Sold goods for cash(costing Rs5000) Rs7000
Goods destroyed by fireRs500
Answers
Answer:
cash +stock+ prepaid=outstanding + capital 0 insurance salary
1200000 1200000
-(10000)+10000
new equation
1190000+10000+0 = 0 +1200000
-(5000) - (5000)
new equation
1185000+10000+0 =0 +119500
=2000 _(2000)
new equation
1185000+10000+0 =2000+1193000
_(1000) +1000
new equation 1184000+10000+1000=2000+1193000
+700 700
new equation 1184700+10000+1000=2000+1193700
+7000 -(5000) (profit)+2000
new equation
1191700+5000+1000= 2000+1195700
-(500) _(500)
new equation 1191200+5000+1000=2000+1195200
Assets = Liabilities + Capital
1197200 = 1197200
i hope it will help you