Question

prepare the accounting equation on the basis of the following transaction: started business with cash 80,000. Rent received 1,000. prepaid Insurance 1,200. salary paid 1,500.​

Answer 1

Answer:

1) Capital a/c .....Dr Rs 80000

To Cash A/C Rs 80000

(Being capital introduced)

2) Cash A/c........Dr Rs 1000

To Rent a/c Rs 1000

(Being Rent Recived)

3) Insurance A/c .....Dr Rs 1200

To Cash a/c Rs 1200

(Being prepaid Insurance paid)

4) Salary A/c ...Dr Rs 1500

To Cash A/c Rs 1500

( Being Salary paid)

Answer 2

Answer:

cash ₹78, 300;prepaid expenses₹1, 200;capital₹79, 500