Discuss and analyze the following transactions for X Ltd, using the concept of accounting equation (Assets, Liabilities and Equities).
Assets= Liabilities +Equity
Purchased furniture= Rs 675,000
Goods sold on credit=Rs 400,000
Goods sold=Rs 300,000
Purchased goods from Sneha=Rs 600,000
Total Assets=Rs 1,975,000
Cash introduced by owners 12 lakhs which is Rs 1,200,000
Goods purchased on Credit=Rs 105,000
Rs 1,975,000 is more than Rs 1,200,000+Rs 105,000(Rs 1,305,000).
Company X ltd has already hit the break even point and is making profit.