Question

3. Show the effect of the following transactions on the Accounting Equation,
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(1) Started business with cash 50,000
(ü) Salaries paid * 2,000
(ui) Wages outstanding *200.
(iv) Interest due but not paid 100
(u) Rent paid in advance 150​

Answer 1

Answer:

1. cash to capital. 50000

2. salaries to cash. 2000

3. outstanding wages to cash 200

4. accured intrest to intrest 100

5. advance rent to cash 150