Question

What will be effect of the following on the Accounting Equation? (7)

1. Commenced business with cash ₹450000 and Furniture Rs. 20,000.

2. Depreciation charged on furniture @ 10%.

3. Purchased goods for Rs. 3,300 on credit and for cash Rs. 1,100.

4. Paid salary in advance ₹2000

5. Introduced additional capital ₹10000

6. Purchased computer ₹15000

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Answer 1

Explanation:

2,00,000 and machinery 50,000.

 Purchased goods for cash 20,000 and on credit 10,000.

 Rent Outstanding 1,000.

 Commission received 2000.

 Insurance prepaid 1200.

 Depreciation on machinery 500.