Interest on drawing (Rs200)
in accounting equation &
Prepaid insuranceRs(100) in accounting equation where will be posted
Answers
Answered by
0
Interest on drawing Rs. 200 will be reduced from the cash account in the assets side and the same will be reduced from the capital account too, it is going to show equal balance on both sides.
Prepaid Insurance Rs. 100 will be reduced from the cash account in the assets side and a new account of Prepaid Expenses will be opened on the asset side, there will be no change on the liabilities side, it is going to show equal balance on both sides.
Similar questions