Accounting Equation Problem 8

Following transactions are given.

1. Started business with Rs. 30,000.
2. Salaries paid Rs. 5,000.
3. Purchased goods for cash Rs. 8,000.
4. Sold goods costing Rs. 3,500 to Kiran for Rs. 4,000.

Required: Accounting Equation.

S.No.	Transactions	Assets	=	Capital	+	Liabilities
1	Business started	+30,000		+30,000		0
	Beginning Equation	30,000	=	30,000	+	0
2	Salary paid	-5,000		-5,000		0
	New Equation	25,000	=	25,000	+	0
3	Purchased goods for cash	+8,000 -8,000		0		0
	New Equation	25,000	=	25,000	+	0
4	Sold goods at profit to Kiran	+4,000 -3,500		+500		0
	Final Equation	25,500	=	25,500	+	0

Note: If anybody have confusion in above given solution then comment me below.