Question

.Prepare an Accounting Equation from the following: a)Started business with cash Rs.10,000 b)Rent received Rs 2,000 c)Accrued interest Rs 500 d)Commission received in advance Rs 1,000 e)Amount withdrawn Rs5,000

Answer 1

Answer:

Asset =Capital/equity+liability (A=C/E+L)

8500=7500+1000

8500=8500

Explanation:

Accounting equation

Asset =Capital/equity+liability (A=C/E+L)

A) cash(10000) =capital(10000)+liabilities (0)

B) Cash(2000)=p/l account (2000)+liabilities (0)

C) Accrued interest (500)=p/l account (500)+liabilities (0)

D) cash(1000)=capital(0)+commission received in advance (1000)

E) cash(-5000) = capital(-5000)+liabilities (0)