Question

Prepare accounting equation on the basis of the following
Saleem started bussiness with cash 2, 50, 000
Borrowed cash 40000 fro
m bank
Telephone bills paid in cash 3000

Answer 1

Accounting equation

Asset = capital + liability

1) started business with cash

Cash = capital + liability

250000=250000+0  

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2)Borrowed cash from bank

Cash = capital +bank loan

(250000+40000)= 250000+40000

290000  =  290000

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3)Telephone bills paid

Cash = capital + bank loan

(290000-3000)  = (250000-3000) + 40000

287000  = 247000 + 40000

287000 = 287000