Chapter 5 – Accounting Equations – TS Grewal 2022
Question 9
Use accounting equation to show the effect of the following transactions of M/s Royal Traders:
(a) Started business with cash ₹1,20,000.
(b) Purchased goods for cash ₹10,000.
(c) Rent received ₹5,000.
(d) Salary outstanding ₹2,000.
(e) Sold goods for cash (costing ₹5,000) ₹7,000.
(f) Goods destroyed by fire ₹500.
Solution:
Use accounting equation to show the effect
