Rohit has the following transactions : (a) Commenced business with cash 1,50,000 (b) Purchased machinery on credit 40,000 (c) Purchased goods for cash 20,000 (d) Purchased car for personal use 80,000 (e) Paid to creditors in full settlement 38,000 (f) Sold goods for cash costing5,000 4,500 (g) Paid rent 1,000 (h) Commission received in advance 2,000 Prepare the Accounting Equation to show the effect of the above transactions on the assets, liabilities and capital.

Rohit has the following transactions : (a) Commenced business with ca

1.	Rohit has the following transactions : (a) Commenced business with cash 1,50,000 (b) Purchased machinery on credit 40,000 (c) Purchased goods for cash 20,000 (d) Purchased car for personal use 80,000 (e) Paid to creditors in full settlement 38,000 (f) Sold goods for cash costing5,000 4,500 (g) Paid rent 1,000 (h) Commission received in advance 2,000 Prepare the Accounting Equation to show the effect of the above transactions on the assets, liabilities and capital.
Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/assets-885948" style="font-weight:bold;" target="_blank" title="Click to know more about ASSETS">ASSETS</a> = Cash 17,500 + Machine40,000 + <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> 15,000 72,500, <a href="https://interviewquestions.tuteehub.com/tag/liabilities-1072887" style="font-weight:bold;" target="_blank" title="Click to know more about LIABILITIES">LIABILITIES</a> = Commission 2,000 + Capital 70,500= 72,500</body></html>

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