Question

Purchased furniture through cheque -accounting equations questions

Answer 1

Then you add amount reduce the amount from bank nd add in furniture column nd there is no effect on another side (laibilities +capital)

Answer 2

Answer:

It will effect the assets only.

Explanation:

Accounting Equation

Assets = Liabilities + Owner's Equity

Bank + Furniture = Liabilities + Owner's Equity

Deduction from the bank account as money is going out and on the other hand asset is coming into the business which increases the furniture so there is addition in furniture account. There is no effect on the other side of the equation.