Question

Sumit started business with cash 5000 Purchased furniture for cash 6000 Bought goods from ram on credit 15000 Withdrew cash 4000 and goods for,5000 for personal use Sold goods costing 8000at a profit of 25% Paid to creditors 10000 Received interest 2000 Thanks

Answer 1

capital=5000
furniture purchased=6000
purchased goods on credit=15,000
drawings=5000+4000=9000
sold goods at profit of 25%=8000×25÷100=2000
paid to creditors=10,000
received interest=2000

Answer 2

cash Account debit to capital account being sumit started business with cash

5000