1.

Use accounting equation to show the effect of the following transactions of M/s Royal Traders: Rs (a) Started business with cash 1,20,000 (b) Purchased goods for cash 10,000 (c) Rent received 5,000 (d) Salary outstanding 2,000 (e) Prepaid Insurance 1,000 (f) Received interest 700 (g) Sold goods for cash (costing Rs 5,000) 7,000 (h) Goods destroyed by fire 500

Answer»



Use accounting equation to show the effect of the following transactions of M/s Royal Traders:
























































Rs



(a)



Started business with cash



1,20,000



(b)



Purchased goods for cash



10,000



(c)



Rent received



5,000



(d)



Salary outstanding



2,000



(e)



Prepaid Insurance



1,000



(f)



Received interest



700



(g)



Sold goods for cash (costing Rs 5,000)



7,000



(h)



Goods destroyed by fire



500









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