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 plz answer it fast I will mark as brainliest and plz don't spam​

Answer»

a) Cash a/c dr. 120000 To capital a/c 120000b) purchases a/c Dr. 10,000 To cash a/c. 10,000c) Cash a/c. Dr. 5000 To RENT a/c. 5000d) Salary a/c. Dr. 2000 To Salary o/s. 2000e) Prepaid INSURANCE Dr. 1000 To insurance. 1000f) Cash a/c Dr. 700 To int. RECEIVED. 700g) Cash a/c Dr. 7000 To sales a/c. 7000h) loss due to fire Dr. 500 To purchases. 500I hope it help you..



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