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On Ist January, 1990, the balances of M/s Khan Bros. are as follows; Assets Cash Debtors of goods Stock of goods Building Liabilities &
On Ist January, 1990, the balances of M/s Khan Bros. are as follows; Assets Cash Debtors of goods Stock of goods Building Liabilities & Owner's equity Rs. 25000 Creditors 40000 17000 Capital 94000 22000 70.000 134000 134000 Req. Transactions during the month of January; Jan: 1. 5. Purchased goods for cash Rs. 4,000 subject to a trade discount of 10% Sold goods for cash Rs. 12,000 Costing Rs. 10,500 7. Cash paid to creditors Rs. 25,000 9. Sold goods for cash Rs.5,000 and as credit basis Rs.3,000 costing Rs.6,000. 11. Goods returned by a customer Rs. 2,000 costing Rs. 1,900 15. Cash received from debtors Rs. 14,000 18. Cash paid for furniture purchased for owner's domestic use Rs. 1,000 22. Depreciation on building Rs. 1,400 29. Paid telephone bill Rs. 600 30. Paid salaries Rs. 3,030. Show the effects of above transactions on the accounting equation.
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