Question

Sold goods costing $1000 on credit at 25% profit. Show it in accounting equation form​

Answer 1

see below

Step-by-step explanation:

The accounting equation is represented as Assets = Equity + Liabilities

From this transaction,

Stocks(assets) decrease by $1000

Debtors(asset) increase by $1000

Profits(capital) increase by $250 ( 25% of $1000)

Assets = Liabilities + Capital

stocks debtors revenue/gains

- $1000 + $1000 + $250