Reference no: EM132992082

Question - Following are the accounting transactions relating to Mr. P's business. Use the accounting equation to show their effect on his assets, liabilities and capital.

1. Commenced business with a Capital of 150,000.

2. Bought Machinery for cash 10,000.

3. Purchased goods for cash 15,000.

4. Purchased goods from A on credit 5,000.

5. Sold goods for cash 10,000.

6. Paid to A 2,000.

7. Sold goods to B on credit 3,000.

8. Paid into Bank 16,000.

9. Paid to A by cheque 1,000.

10. Received from B a cheque for 2,000.