1. Show the effect of the following transaction by means of Accounting Equation.
Asim started a business by introducing capital afs
Purchased building for cash afs
Purchased merchandise on account(credit) afs
Sold merchandises for afs, costing afs 10000
Expenses paid 1000
Asim drawings afs 200
Purchased machinery for cash afs.

2. Give effect of these transactions on elements of accounting .
Umar started a business with cash afs 20000
Purchased equipments for 3000
Purchased merchandise from Ahmed for 5000afs on credit basis.
Paid utility bills 1000afs.
Paid cash to Ahmed in full.

3. Show the effect of following transaction on accounting equation.
Imran started a business with cash
Purchased goods on credit from Ahmad for
Paid transportation expenses 25000
Sold goods for cash 50000, costing 45000
Purchased machinery on account from Asim.
Imran’s drawings 5000
Paid cash to Ahmad