Question

Q3. Accounting equations
Vanishka had the following transactions.
Use accounting equation to show their effect on
her assets, liabilities and capital.
(i) Invested 30,000 in cash as capital.
(ii) Purchased furniture for cash 15,000.
(ii) Purchased a building for ? 30,000, giving
210,000 in cash and the balance through a loan.
(iv) Sold furniture costing 2,000 for 3,000.
(v) Purchased an old car for 5,600 cash.
(vi) Received cash as rent 7,200.
(vii)
Paid cash 1,000 for loan and 600 for interest.
(viii) Paid cash for household expenses 600.
(ix) Received cash for dividend on securities 400​

Answer 1

Explanation:

The amount of prepaid insurance will be credited from assets and debited in liability thus, the equation will be 5000 +1000 = 2000+4000-1000. The same way commission of Rs.