please show the of effect of the transactions upon the Accounting Equation?

Show the effect of the following transactions upon the Accounting Equation;


Feb. 1. Salman started his business with cash Rs.1, 00,000

5. Purchased furniture for cash Rs.4, 000

6. Purchased goods for cash Rs.25, 000

10. Paid transportation on goods purchased Rs.1, 000

12. Sold goods for cash Rs.15, 000, costing Rs.11, 000

15. Purchased goods on credit basis for Rs.15, 000

19. Sold goods to Rashid on credit basis for Rs.8, 000. Costing Rs.6, 500

25. Received cash from Rashid Rs.4, 000

28. Cash paid to creditor Rs.9, 000

30. Paid rent and salaries for the month Rs.4, 000

1 Answer

  • 1 decade ago
    Favorite Answer

    1. Debit "Cash", Credit "Owner Equity".

    2. Debit "Equipment", Credit "Cash" (4000)

    6. Debit "Inventory", Credit "Cash" (25000)

    10. Debit "Inwards Freight", Credit "Cash"

    12: Debit "Cash" Credit "Sales"(15000)

    Debit "Cost of Sales", Credit"Inventory"(11000).

    Others are left for other answerers.

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