1.

Use accounting equation to show the effect of the following transactions of M\s Royal Traders (Rs)(a)Started business with cash1,20,000(b) Purchased goods for cash10,000(c) Rent received5,000(d) Salary outstanding2,000(e) Prepaid insurance1,000(f) Received interest700(g) Sold goods for cash (costing Rs 5,000)7,000(h) Goods destroyed by fire500

Answer»

Use accounting equation to show the effect of the following transactions of M\s Royal Traders

(Rs)(a)Started business with cash1,20,000(b) Purchased goods for cash10,000(c) Rent received5,000(d) Salary outstanding2,000(e) Prepaid insurance1,000(f) Received interest700(g) Sold goods for cash (costing Rs 5,000)7,000(h) Goods destroyed by fire500



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