1.

Prepare an Accounting Equation on the basis of the following transactions:(i) Started business with cash ₹ 70,000.(ii) Credit purchase of goods ₹ 18,000.(iii) Payment made to creditors in full settlement ₹ 17,500.(iv) Purchase of machinery for cash ₹ 20,000.(v) Depreciation on machinery ₹ 2,000.

Answer» Prepare an Accounting Equation on the basis of the following transactions:

(i) Started business with cash ₹ 70,000.

(ii) Credit purchase of goods ₹ 18,000.

(iii) Payment made to creditors in full settlement ₹ 17,500.

(iv) Purchase of machinery for cash ₹ 20,000.

(v) Depreciation on machinery ₹ 2,000.


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