Question

he purchased a building and furniture for 1,00,000 how we enter in accounting equation

Answer 1

We know that accounting equation is

Assets = owners equity + other liabilities..

"He purchased building"100000

When he purchases a building for cash..100000

Cash decreases and building comes in..
that is one asset decreases and another asset increases ..there will not be any affect on liability side of accounting equation.

assets :-
cash = xxxxx - 100000

Building = + 100000


2)In the way..

When he purchases Furniture....cash will decrease and Furniture comes in..
so one asset decreases and another asset increases..there will not be any affect in the liability side of accounting equation.

assets :-
cash = xxxxx - 100000

furniture = + 100000

Answer 2

Purchased building rs 100000

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