State the meaning of business transaction. How is Office Machine purchased for cash for Rs.13,500/- shown in Accounting Equation?
Answers
Answered by
24
Answer:
assets = liabilities + capital
13500 = 0 + 13500
Answered by
46
Answer:
The business transactions is the economic activity in relation to third party.
Explanation:
Business transaction is the event which can be measured or evaluated in terms of money and have a impact on financial operations or position of the entity of the business.
It has effect on any of the elements of the accounting which are assets, capital, income, liabilities and expense.
The machine which is purchased for cash will be shown in accounting equation as:
Accounting Equation
Assets = Liabilities + Capital
Cash will decrease and assets will increase by the office machine. It will have only impact on assets.
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