Question

8.What is the basic accounting equation?1
9. Prove that the accounting equation is satisfied in all the following transactions of Sita
Ram house by preparing the analysis table. Also record the transactions in Journal. 5
(1) Business commenced with a capital of 6,00,000.
(ii) 4,50,000 deposited in a bank account.
(iii) 2,30,000 plant and Machinery Purchased by paying '30,000 cash immediately.
(iv) Purchased goods worth '40,000 for cash and '45,000 on account.
(v) Paid a cheque of 2,00,000 to the supplier for plant and Machinery,
(vi) '70,000 cash sales (of goods costing '50,000).
(vii) Withdrawn by the proprietor 35,000 cash for personal use.
(viii) Insurance paid by cheque of 2,500.
(ix) Salary of '5,500 outstanding.
(x) Furniture of '30,000 purchased in cash.
ful
action​

Answer 1

Answer:

The fundamental accounting equation, also called the balance sheet equation, represents the relationship between the assets, liabilities, and owner's equity of a person or business. It is the foundation for the double-entry bookkeeping system. For each transaction, the total debits equal the total credits.

Explanation:

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Answer 2

Answer:

8. The accounting equation shows on a company's balance that a company's total assets are equal to the sum of the company's liabilities and shareholders' equity. Assets represent the valuable resources controlled by the company. The liabilities represent their obligations.