Question

What is accounting equation of additional capital introduced

Answer 1

Answer:

Explanation:

The accounting equation, Assets = Liabilities + Capital means that the total assets of the business are always equal to the total liabilities plus the owners equity of the business. This is true at any time and applies to each transaction. For this transaction the accounting equation is shown in the following table

Answer 2

Answer:

As we know that in accounting equations, Assets = Equity + liabilities

where, Equity includes the capital.

So, when additional capital is introduced, it affects the Equity and the Assets. Both, assets and equity increases.

Suppose the additional cap. is of ₹1,00,000

So, Assets = equity + liability

1,00,000 = 1,00,000 + 0

1,00,000 = 1,00,000

I hope this is helpful