Question

Commenced business with cash 90000 and bank balance 40000 accounting equation

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.

The entries will be :

Cash a/c = 90000

Bank a/c = 40000

Capital = 130000

Cash and bank will come on asset side and capital will come on liabilities side i. e.

Assets = liabilities + capital

Cash a/c + bank a/c = capital

90000 + 40000 = 130000