17. Show the effect of following transactions on accounting equations :
(i) Divedi started business with cash 40,000.
(ii) Lent 10,000 to Trivedi.
(iii) Interest received from Trivedi 400.
(iv) Borrowed 25,000 from Charturvedi.
(v) Interest paid to Chaturvedi 1,000.
(vi) Interest given to Divedi 1,500.
Hint. Lending the money is an asset "Loan to Trivedi' and borrowing the money is a liability
'Chaturvedi's Loan'.
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Answer:
Explanation:
Capital = Assets - Liabilities
1. 40000 = 40000 - 0
2. 50000 = 50000 - 0
3. 50400 = 50400 - 0
4. 25400 = 50400 - 25000
5. 24400 = 49400 - 25000
6. 22900 = 47900 - 25000
Hope this answer helps:).
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