plzz tell me how can the (g) one can solve
Dear Student,
In point (g)
When Goods worth Rs 10,000 are sold for Rs12,000 then it result into a profit of Rs 2,000(12,000-10,000)
It will be accounted for in accounting equations like this
Cash will increase by 12,000(on account of cash receipts)
Stock will reduce by 10,000(on account of goods sold)
Capital will Increase by 2,000(on account of profit)
and the Accounting Equation Assets = Liabilities + Capital, will match
12000(Increase in Cash) - 10,000(Stock Reduced) = 2000(Profit)
Regards
In point (g)
When Goods worth Rs 10,000 are sold for Rs12,000 then it result into a profit of Rs 2,000(12,000-10,000)
It will be accounted for in accounting equations like this
Cash will increase by 12,000(on account of cash receipts)
Stock will reduce by 10,000(on account of goods sold)
Capital will Increase by 2,000(on account of profit)
and the Accounting Equation Assets = Liabilities + Capital, will match
12000(Increase in Cash) - 10,000(Stock Reduced) = 2000(Profit)
Regards