Question

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Accounting equation (A=L+C) always holds good under all circumstances. Explain with the help of two examples.

➡️Class - XI

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Answer 1

Answer:

Accounting equation signifies that the asset of business are always equal to the tot of capital and liabilities . A business transaction will result in the change in either of the asset , liabilities or capital of the firm and even after the change the asset will be totally equal to the capital in liabilities .

1. example: gopal stated a business in 75000 as capital .
2. Ram opened a shop with 5000 as capital .

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