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Explain the double entry mechanism with an illustrative example.
Numerical Questions
nalysis of Transactions
1. Prepare accounting equation on the basis of the following:
(a) Harsha started business with cash
Rs.2.00.000
(b) Purchased goods from Naman for cash
Rs. 40.000
(c) Sold goods to Bhanu costing Rs. 10,000/-
Rs. 12.000
(d) Bought furniture on credit
Rs. 7.000
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