Question

prepare accounting equation and balance sheet on the basis of the following pallavan started business with cash​

Answer 1

Answer:

The amount of prepaid insurance will be credited from assets and debited in liability thus, the equation will be 5000 +1000 = 2000+4000-1000. The same way commission of Rs. 2800 will be added to assets and liability because there's an increase in cash and also an increase in capital (Income).