Question

1.	John Amos started the business with a cash investment of $41,000.
2.	Purchased equipment for $12,500 on credit.
3.	Performed services for $4,000 in cash.
4.	Purchased additional equipment for $2,700 in cash.
5.	Performed services for $4,100 on credit.
6.	Paid salaries of $3,500 to employees.
7.	Received $1,300 cash from charge account customers.
8.	Paid $5,400 to a creditor on account. Show how each transaction would be recorded in the accounting equation.

Answer 1

S.No	Particulars	Debit	Credit
1	Cash	41000
	Capital		41000
2	Equipment	12500
	Account Payable		12500
3	Cash	4000
	Service fee		4000
4	Equipment	2700
	Cash		2700
5	Account Receivable	4100
	Service Fee		4100
6	Salary	3500
	Cash		3500
7	Cash	1300
	Account Receivable		1300
8	Account Payable	5400
	Cash		5400