# Prepare accounting equation from the foolowing:-1. Sandeep started business with cash Rs. 1,00,0002.purcshased furniture for cash Rs. 5,0003. purchased good for Rs. 20,0004. purchased good on credit Rs. 36,0005. paid for rent Rs. 7006. goods costing s. 40,000 sold at a profit of 20% for cash

Accounting Equation

 S. No. Transaction Assets = Liabilities + Capital Cash + Stock + Furniture = Creditors + Capital (i) Sandeep started business with Rs. 1,00,000 1,00,000 + 0 + 0 = 0 + 1,00,000 New Equation 1,00,000 + 0 + 0 = 0 + 1,00,000 (ii) Purchased furniture for cash for Rs. 5,000 (-) 5,000 + 0 + 5,000 = 0 + 0 New Equation 95,000 + 0 + 5,000 = 0 + 1,00,000 (iii) Purchased goods for Rs. 20,000 (-)20,000 + 20,000 + 0 = 0 + 0 New Equation 75,000 + 20,000 + 5,000 = 0 + 1,00,000 (iv) Purchased goods on credit Rs. 36,000 0 + 36,000 + 0 = 36,000 + 0 New Equation 75,000 + 56,000 + 5,000 = 36,000 + 1,00,000 (v) Paid for rent Rs.700 (-) 700 + 0 + 0 = 0 (-) 700 (vi) New Equation Goods costing 40,000 sold at a profit of 20% for cash . 74,30048,000 +  (-) 56,00040,000 ++ 5,000  0 == 36,000  0 +  + 99,300  8,000 Final Equation 1,22,300 + 16,000 + 5,000 = 36,000 + 1,07,300

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please answer this i want very urgently as i hav exam tomorrow...........

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