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Give account equation, mr. Krishna started business with cash 5000,paid salaries 5000, wages outstanding 2000, prepaid insurance 1000, rent paid in advance 2500, interest due but not paid 800,rent received 3000, accrue interest 1500,commission received in advance 4000, purchased machinery for cash 10000, depriciation on machinery 1000?
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Give account equation, mr. Krishna started business with cash 5000,pai...
Accounting Equations:
• Cash (5000) - Salaries (5000) = 0
• Wages Outstanding (2000) + Prepaid Insurance (1000) + Rent Paid in Advance (2500) + Interest Due (800) - Rent Received (3000) - Accrued Interest (1500) - Commission Received in Advance (4000) - Purchased Machinery (10000) - Depreciation on Machinery (1000) = 0

Explanation:

Starting Cash:
Mr. Krishna started the business with cash of 5000.

Expenses:
- Salaries paid: 5000
- Wages outstanding: 2000
- Prepaid Insurance: 1000
- Rent Paid in Advance: 2500
- Interest Due: 800
- Depreciation on Machinery: 1000

Income:
- Rent Received: 3000
- Accrued Interest: 1500
- Commission Received in Advance: 4000

Asset Purchase:
Machinery purchased for cash: 10000

Analysis:
The accounting equation must balance, meaning that the total assets must equal the total liabilities and owner's equity. In this case, the equation balances as the total expenses and assets equal the total income and liabilities. This ensures that the business's financial position is accurately reflected.
Community Answer
Give account equation, mr. Krishna started business with cash 5000,pai...
Assets=8500. Liabilities=6800. Capital=1700
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Give account equation, mr. Krishna started business with cash 5000,paid salaries 5000, wages outstanding 2000, prepaid insurance 1000, rent paid in advance 2500, interest due but not paid 800,rent received 3000, accrue interest 1500,commission received in advance 4000, purchased machinery for cash 10000, depriciation on machinery 1000?
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Give account equation, mr. Krishna started business with cash 5000,paid salaries 5000, wages outstanding 2000, prepaid insurance 1000, rent paid in advance 2500, interest due but not paid 800,rent received 3000, accrue interest 1500,commission received in advance 4000, purchased machinery for cash 10000, depriciation on machinery 1000? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Give account equation, mr. Krishna started business with cash 5000,paid salaries 5000, wages outstanding 2000, prepaid insurance 1000, rent paid in advance 2500, interest due but not paid 800,rent received 3000, accrue interest 1500,commission received in advance 4000, purchased machinery for cash 10000, depriciation on machinery 1000? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Give account equation, mr. Krishna started business with cash 5000,paid salaries 5000, wages outstanding 2000, prepaid insurance 1000, rent paid in advance 2500, interest due but not paid 800,rent received 3000, accrue interest 1500,commission received in advance 4000, purchased machinery for cash 10000, depriciation on machinery 1000?.
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