Question

prepare the accounting equation :- Ram started business with cash and machinery worth rupees 10 lakh and 5 lakh respectively​

Answer 1

Answer:

Please check explanation section for answer.

Explanation:

Accounting equation is Capital = Assets - Liabilities

Assets = Rs. 10 lakh + Rs. 5 lakh = Rs. 15 lakh

Liabilities (External) = Rs. 0

Therefore, Capital = Rs. 15 lakh - Rs. 0 = Rs. 15 lakh

This is because capital is our internal liability.

Hope this answer helps :).