Question

. 2. Prepare Accounting equation on the basis of the following.
i) Mythri commenced Business with cash 50,000
ii) Cash deposited into bank 2,00,000
iii) Purchased furniture for rs. 1,00,000 from priya agencies on account​

Answer 1

Answer:

.

Transactions

Assets

=

Liabilities

+

Capital

Cash

(Rs)

+

Bank

(Rs)

+

Stock

(Rs)

=

Creditors

(Rs)

(Rs)

(i)

Started business with cash

45,000

=

45,000

45,000

=

45,000

(ii)

Opened a Bank Account with a deposit

– 4,500

+

4,500

=

40,500

+

4,500

=

45,000

(iii)

Bought goods from M/s. Sun & Co.

11,200

=

11,200

Total Assets

=

Cash + Bank + Stock

=

40,500 + 4,500 + 11,200

=

Rs

56,200

Liabilities

=

11,200

Capital

=

45,000