Accounting Equation

Prepare accounting equation from the following.


  1. Started business with cash Rs. 18750 and goods Rs. 6250
  2. Paid rent for Rs. 500
  3. Bought goods for cash Rs. 7500 and on credit for Rs. 11,000
  4. Goods costing Rs. 12,500 sold at a profit of 25% of od which Rs. 6875 received in cash.
  5. purchased a lona for personal use Rs. 5,000.
solution :-