Question

Commenced business with cash 50000 furniture of rs 6000 and stock of rs 14000 accounting equation

Answer 1

I hope this will help you

Answer 2

Answer:

The impact on accounting equation of commencing business with stock, cash and furniture is as follows:

Explanation:

Accounting Equation

Assets = Liabilities + Owner's Equity or Capital

So, the business is started with stock of Rs 14,000, this will impact the stock as well as it is added in capital of the business, the furniture of Rs 6,000, impact the furniture account in assets as well as added in capital account and with cash of Rs 50,0000, this will be shown in the cash account of assets as well as added in the capital account.

Assets  = Liabilities + Owner's Equity or Capital

Cash + Furniture + Stock  = Liabilities + Owner's Equity or Capital (Cash + Furniture + Stock)

Rs 50,000 + Rs 6,000 + Rs 14,000 = Liabilities + Capital (Rs 50,000 + Rs 6,000 + Rs 14,000)

Rs 70,000 = Rs 0 + Rs 70,000

Rs 70,000 = Rs 70,000