What is Accounting Equation ?

Q.1 What will be effect of the following on the Accounting Equation?

(i) Started business with cash ₹ 45,000

 (ii) Opened a Bank Account with a deposit of ₹ 4,500

(iii) Bought goods from M\s. Sun & Co. for ₹ 11,200

Q.2 Show the effect of the following transactions on the Accounting Equation:

(i) Started business with cash ₹ 50,000.

(ii) Salaries paid ₹ 2,000.

(iii) Wages Outstanding ₹ 200.

(iv) Interest due but not paid ₹ 100.

 (v) Rent paid in advance ₹ 150.

Q.3 Show the Accounting Equation for the following transactions: 

 

(i) Gopinath started business with cash 25,000 (ii) Purchased goods from Shyam 10,000 (iii) Sold goods to Sohan costing 1,800 1,500 (iv) Gopinath withdrew from business 5,000