Question

Show the accounting equation on the basis of following transactions:
(a) Ram started business with ₹ 25,000.
(b) Purchased goods from Shyam ₹ 10,000.
(c) Sold goods to Sohan costing ₹ 1,500 for ₹ 1,800.

Answer 1

S. No.	Transaction	Assets					=	Liabilities	+	Capital
		Cash	+	Stock	+	Debtors	=	Creditors
(i)	Ram Started Business with Cash	25,000							+	25,000
(ii)	Purchased Goods from Shyam		+	10,000				10,000
	New A/c Equation	25,000	+	10,000			=	10,000	+	25,000
(iii)	Sold Goods to Sohan costing Rs.1,500 for Rs.1,800			(-)1,500	+	1,800			+	300 (Profit)
		25,000	+	8,500	+	1,800	=	10,000	+	25,300