Question

Show the effect of the following transactions on the Accounting Equation:
(i) Started business with cash Rs. 50,000.
(ii) Salaries paid Rs. 2,000.
(iii) Wages Outstanding Rs. 200.
(iv) Interest due but not paid Rs. 100.
(v) Rent paid in advance Rs. 150.

Answer 1

(i) Started business with cash Rs. 50,000.
(ii) Salaries paid Rs. 2,000.
(iii) Wages Outstanding Rs. 200.
(iv) Interest due but not paid Rs. 100.
(v) Rent paid in advance Rs. 150.