Question

Use accounting equation to show the effect of the following transactions of M/s Royal Traders: Rs (a) Started business with cash 1,20,000 (b) Purchased goods for cash 10,000 (c) Rent received 5,000 (d) Salary outstanding 2,000 (e) Prepaid Insurance 1,000 (f) Received interest 700 (g) Sold goods for cash (costing Rs 5,000) 7,000 (h) Goods destroyed by fire 500 plz answer it fast I will mark as brainliest and plz don't spam​

Answer 1

Answer:

a) Cash a/c dr. 120000

To capital a/c 120000

b) purchases a/c Dr. 10,000

To cash a/c. 10,000

c) Cash a/c. Dr. 5000

To rent a/c. 5000

d) Salary a/c. Dr. 2000

To Salary o/s. 2000

e) Prepaid insurance Dr. 1000

To insurance. 1000

f) Cash a/c Dr. 700

To int. received. 700

g) Cash a/c Dr. 7000

To sales a/c. 7000

h) loss due to fire Dr. 500

To purchases. 500

I hope it help you..