Question

Use Accounting Equation to show the effect of the following
transactions of Ravi Traders.
a. Started business with cash 1,00,000
b. Bought goods for cash Rs. 20,000
c. Rent received Rs. 5,000
d. Salary outstanding Rs. 10,000
e. Goods destroyed by fire Rs. 13,000
f. Paid for charity Rs 200
​

Answer 1

Answer:

Assets = liabilities + capital

Cash+stock = credirors + o/s rent +capital

1)

18000

18000

2)

−5000+7000=2000                  +18000

13000+7000=2000                  +18000

3)

4000−2400                                    1600

14000+4600=2000                +19,600

4)

−1000=200                    −1200

16000+4600=2000        200+18400