Question

30
Show that accounting equation is satisfied in the following cases:-
1. Sumit commenced business with cash Rs.- 40,000 and goods Rs.-
25,000.
​

Answer 1

Answer:

Total Assets

=

 

Cash + Bank + Stock

 

=

 

40,500 + 4,500 + 11,200

 

=

Rs

56,200

Liabilities

=

 

11,200

Capital

=

 

45,000