Question

Paid salary Rs.500and salary outstanding being Rs.100

ACCOUNTING EQUATION

Answer 1

accounting equation 

1)Paid salary Rs.500

decrease in cash by 500 and decrease in capital by 500.

2)salary outstanding being Rs.100

decrease in capital by 100 and increase in liability by 100

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Answer 2

Accounting Equation is Asset = Liability + Capital.

It means that asset of the firm is eqaul to its liability and capital.

1. Paid Salary 500

It will result in decrease of cash as payment is made and it will also decrease capital .

2. Outstanding rupees 100

Outstanding means it is not paid yet and should be paid so it is firms liability and outstanding being 100 will reduce capital and will increase liability by hundred.