Question

What will be the effect of the following equation
Harish started business with cash ₹18000
Purchase goods for cash ₹ 5000 and on credit ₹2000
Sold goods for cash costing₹ 2400 for₹ 4000
Rent paid₹1000and rent outstanding₹ ,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