Question

Transaction of Mohan traders are given below. Show the effects of these transaction on assets liabilities and capital with the help of accounting equation
A) business starts with cash € 1,00,000
B) cash purchase € 50,000
C) cash sale of € 60,000
D) purchase furniture for cash € 5,000
E) paid rent € 4,000
F) bought from ratan € 8,000

Answer 1

Answer:

A) Cash A/c Dr. 100000

To Buisness A/c 100000

B) Purchase A/c Dr. 50000

To Cash A/c 50000

C) Cash A/c Dr. 60000

To Sales A/c 60000

D) Furniture A/c Dr. 5000

To Cash A/c 5000

E) Rent A/c Dr. 4000

To Cash A/c 4000

F) Purchase A/c Dr. 8000

To Ratan's A/c 8000