Mohit has the following transactions, prepare accounting equation - Bzziii

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   Mohit has the following transactions, prepare accounting equation:

(a)Business started with cash₹ 1,75,000
(b)Purchased goods from Rohit₹ 50,000
(c)Sales goods on credit to Manish (Costing ₹ 17,500)₹ 20,000
(d)Purchased furniture for office use₹ 10,000
(e)Cash paid to Rohit in full settlement₹ 48,500
(f)Cash received from Manish₹ 20,000
(g)Rent paid₹ 1,000
(h)Cash withdrew for personal use₹ 3,000




S.NoExplanationAssetAssetAssetAssetLiabilities+Capital
  Cash+Stock+Debtors+Furniture=Creditors  
(a)Increase in cash1,75,000          
 Increase in capital          1,75,000
  1,75,000      =NIL+1,75,000
(b)Increase in stock  50,000        
 Increase in creditors (Rohit)       =50,000+1,75,000
  1,75,000+50,000    =50,000+1,75,000
(c)Increase in debtors (Manish)    20,000      
 Decrease in stock  (17,500)        
 Increase  in capital (Profit)          2,500
  1,75,000+32,500+20,000  =50,000+1,77,500
(d)Increase in furniture      10,000    
 Decrease in cash(10,000)          



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