Question

prove that accounting equation is satisfied in all the following cases: 1. commenced business with cash 50,000. 2. paid rent 4,000 ​

Answer 1

Prove that accounting equation is satisfied in all the following cases : <br> (a) Commenced business with cash Rs. 50,000. <br> (b) Paid rent Rs.4,000 including Rs.1,000 as advance. <br> (c ) Bought goods for cash Rs.30,000 and on credit Rs. 20,000. <br> (d) Sold the goods bought on credit for Rs.25,000. <br> (e) Purchased furniture worth Rs.10,000 for office use and for Rs.5,000 for domestic use.