Accounting equation

Question No: 06

Mr.Smith started business with cash Rs 1,000,000 and machinery worth Rs 320,000.

1. Paid rent in advance Rs 45,000 for three month to landlord.

2. Purchased office supplies for Rs 12,000 from Reckon Suppliers.

3. Paid wages Rs 25,000 to employees.

4. Commission received in cash Rs 50,000.

5. Paid creditors Rs 8,000.

6. Paid for office expenses Rs 10,000.

7. Office supplies used Rs 5,000.

8. Withdrew cash for personal use Rs 15,000.

9. Sent a bill to a customer for the services rendered by him for Rs 25,000.

10. Collected from customer on account Rs 20,000.

Required: a. Record the above transactions in the accounting equation.