Question

Show the effect of following transaction on accounting equation and prepare on balance
sheet:
Rs.
1) Started business with cash
=30,000
2) Salary paid
=1,000
3) Wages due but not paid
=200
4) Insurance paid in advance
=100
5) Rent due but not received
=400
[Ans. Cash Rs. 28,900 + Prepaid insurance Rs. 100+ Accrued interest Rs. 400 = Capital
Rs. 29,200 + Outstanding wages Rs. 200].​

Answer 1

Explanation:

for the answer please refer the images that i have uploaded above