2) Rakesh started business on 1st April 2016 with a capital of Rs 1,50,000. During the year the following transactions took place.
a) Purchased furniture for cash of Rs 20,000
b) Purchased goods from Mahesh on credit of Rs 25,000
c) Sold good (costing Rs 10,000) to Mohan for cash Rs 14,000.
d) Additional capital introduced of Rs 20,000.
e) Salary paid Rs 5,000/-
f) Rent received Rs 1000/-
g) Paid to creditor (Mahesh) Rs 22,500/- in full settlement.
h) Sold goods (costing Rs 1500) for Rs 18,000 out of which Rs 5,000 in cash received.
