Problem: In the financial year 2002-03, Acme Carwash recorded the following transactions.
The proprietor invested $20,000 in the business.
The proprietor withdrew $5,000 from the business.
The proprietor bought machinery worth $6,000.
Cash sales amounted to $8,000.
Credit sales amounted to $6,000.
Land was purchased and paid for partly in cash, $8,000, and partly in credit $4,000.
Viterra water bill in the amount of $550 was received and paid immediately.
Progress Energy bill in the amount of $770 was received and recorded but was not paid at the end of the period.
50% of the credit sales were realized.
The Progress Energy bill was paid.
Evaluate the effect of each transaction on the accounting equation.
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S No.
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Assets
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Liabilities
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Owner's Equity
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a)
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b)
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c)
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d)
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e)
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f)
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g)
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h)
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i)
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j)
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