Question

Prepare accounting equation
1. Business started with capital 75000
2. Purchased plant 25000
3. Cash deposited into Bank 5000
4. Range paid 2000
5. Purchased machinery 10000​

Answer 1

Explanation:

NE:means new equation

cash+plant+machinery = capital

1) 75000 75000

2) -25000+25000

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NE:50000+25000 = 75000

3)5000 5000

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NE:55000 +25000 = 80000

4)-2000 - 2000

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NE:53000 +25000 = 78000

5)-10000+ 0 +10000

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NE:43000+25000+10000 = 78000