Question

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

Answer 1

(i) Started business with Cash Rs. 70,000
(ii) Credit purchase of goods Rs. 18,000
(iii) Payment made to creditor Rs. 17,500 in full settlement
(iv) Purchase of Machinery for Cash Rs. 20,000
(v) Depreciation on Machinery Rs. 2,000