Question

The transactions of Kamat Travel Services during a month are as follows:
on
(a) Bought furniture for cash.
(b) Received amount due from a customer.
(c) Bought a car on credit.
(d) Paid amount due to a supplier.
(e) Appointed office assistant.
(f) Cash withdrawn by the proprietor for personal purposes.
(g) Received cash for services to be provided next month.
(h) Provided services on credit.
(i) Received interest on bank deposit.
() Sold unused equipment at purchase price.
(k) Owner invested cash in the business.
Using the format given below, state whether each transaction resulted in increase or decrease
or had no effect on the company's assets, liabilities and equity. Consider the total effect on
assets, liabilities, and equity.
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Answer 1

The transactions of Kamat Travel Services during a month are as follows: Write the effect of transactions on accounting equation (2.5 marks)

(a)Bought furniture for cash. (Solved as a sample)

(b)Received amount due from a customer.

(c)Bought a car on credit.

(d)Paid amount due to a supplier.

(e)Appointed office assistant.

(f)Cash withdrawn by the proprietor for personal purposes.

(g)Received cash for services to be provided next month.

(h)Provided services on credit.

(i)Received interest on bank deposit.

(j)Sold unused equipment at purchase price.

(k)Owner invested cash in the business.