Prove that the Accounting Equation is satisfied in all following transactions of Aslam owner of business enterprises? 1. Started business with cash value of Rs. 400,000. 2. Rent paid in advance for a year Rs. 4,000. 3. Purchased merchandising inventory for cash Rs. 70,000 and on account Rs. 30,000 from Mr. Akram. 4. Purchased Marketable securities for cash Rs. 200,000. 5. Cash Sales Rs. 31,000 (cost 21,000). 6. Withdrew inventory for personal purpose by owner of worth Rs. 5,000 Requirement: Use accounting equation to show their effect on his Assets, Liabilities and Capital?
Prove that the Accounting Equation is satisfied in all following transactions of Aslam owner of business enterprises? 1. Started business with cash value of Rs. 400,000. 2. Rent paid in advance for a year Rs. 4,000. 3. Purchased merchandising inventory for cash Rs. 70,000 and on account Rs. 30,000 from Mr. Akram. 4. Purchased Marketable securities for cash Rs. 200,000. 5. Cash Sales Rs. 31,000 (cost 21,000). 6. Withdrew inventory for personal purpose by owner of worth Rs. 5,000 Requirement: Use accounting equation to show their effect on his Assets, Liabilities and Capital?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prove that the Accounting Equation is satisfied in all following transactions of Aslam owner of
business enterprises?
1. Started business with cash value of Rs. 400,000.
2. Rent paid in advance for a year Rs. 4,000.
3. Purchased merchandising inventory for cash Rs. 70,000 and on account Rs. 30,000 from Mr.
Akram
4. Purchased Marketable securities for cash Rs. 200,000.
5. Cash Sales Rs. 31,000 (cost 21,000).
6. Withdrew inventory for personal purpose by owner of worth Rs. 5,000
Requirement: Use accounting equation to show their effect on his Assets, Liabilities
and Capital?
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