Question

Asoke das started a business with capital in cash​

Answer 1

Answer:

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Answer 2

Hey mate here is Your answer;

Accounting Equation may be defined as:

Share Capital+Liabilities=Fixed Assets+Current Assets

Here , Ashok has contributed Rs.20000 as Capital, this will result an increase in cash by Rs.20000. Goods purchased on credit for Rs.2000 result in an increase in stock by Rs.2000 and increase in current liabilities.

Therefore equation will be:

Capital+ Current Liabilities = Cash+Goods

Rs.20000+Rs.2000 = Rs.20000+Rs.2000.

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