Answer to Question #193331 in Economics for prakash reddy

Question

Discuss and analyze the following transactions for X Ltd, using the concept of accounting equation (Assets, Liabilities and Equities).

1. Purchased Furniture for Rs675000

2. Capital Introduced by the business Owner by depositing 12 Lakhs in the bank account

3. Goods purchased on credit from Aman Enterprises for Rs105000

4. Goods sold on credit for Rs 400000. The cost of the goods sold was Rs 300000

5. Purchased goods from Sneha Enterprises for Rs 600000 and made the payment from the business's bank account

Answer 1

1

debit inventory 675 000

credit account payable 675 000

2

debit the bank account 12 Lakhs

credit equity 12 Lakhs

3

debit inventory 105 000

credit account payable 105 000

4

debit accounts receivable 400 000

credit sales 400 000

debit sales 300 000

credit inventory 300 000

5

debit inventory 600 000

credit the bank account 600 000