Question

Purchased a furniture for 15000 giving 5000 in cash and the balance through a loan accounting equation

Answer 1

Answer:

Assets = Liabilities + Capital

Cash + Furniture  = Bank Loan

(-5000) + 15000    = 10000

Explanation:

The above is the accounting equation for the same.

The accounting equation means that All assets must be equal to sum of liabilities and capital. Here furniture is being purchased by paying 5000 in cash and rest i.e 10000 by loan , as total price of furniture is 15000.