Question

Draw an Accounting Equation for the following transactions: i. Started business with cash Rs. 80000 ii. Purchased goods for cash Rs.50000 & credit Rs.10000 iii. Paid rent in advance Rs.1000 iv. Paid salary Rs.1800 & outstanding salary Rs.800 v. Sold goods costing Rs.8000 for Rs.12000 cash

Answer 1

Dear Student

Particulars	Assets			Total	=	Liabilities	+	Capital		Total
	Cash	Goods	Prepaid Expenses			Creditors		Capital	Profit
1. Started business with cash	80,000	-		80,000				80,000		80,000
2. Purchased goods for cash and credit	(50,000)	60,000		10,000		10,000				10,000
3. Paid Rent in advance	(1,000)		1,000	-						-
4. Paid Salary and Outstanding salary	(2,600)			(2,600)		(800)			(1,800)	(2,600)
5. Sales	12,000	(8,000)		4,000					4,000	4,000

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