1.

Prepare Accounting Equation from the following :- 1. Sandeep started business with Cash 2. Purchased furniture for cash3. Purchased goods for cash4. Purchased goods on credit5. Paid for rent6. Goods Costing 40,000 sold at a profit of 20% for cash1,00,0005,00020,00036,000700​

Answer»

1-CASH a/c. DrTo capital a/c(being sandeep started business with cash)2-FURNITURE. a/c. DrTo cash a/c(being purchased furniture for cash)3- purchases. a/c. DrTo cash. a/c(being goods purchased for cash)4- purchases a/c. DrTo CREDITOR a/c(being goods purchased on credit)5-rent. a/c. DrTo cash. a/c(being rent PAID)6-cash. a/c. DrTo sales a/c(being goods sold for profit)Explanation:1-cash-real a/c-debit-what comes in,capital- personal a/c -credit-credit the giver2-furniture-real a/c-debit-what comes incash - real a/c - credit - what goes out3-purchases- real a/c -debit- what comes incash -real a/c - credit- what goes out4-purchases-real a/c-debit-what comes increditor- personal a/c - credit - credit the giver5-rent-nominal a/c- debit- All EXPENSES and lossescash -real a/c - credit-what goes out6-cash- real a/c-debit-what comes insales- real a/c - credit- what goes out


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