Accounting Equation Solutions for Credit Sales to Hari

The accounting equation is a fundamental concept in accounting that helps us understand the relationship between assets, liabilities, and equity. In this case, we are looking at how a credit sale to Hari affects the accounting equation.

Assets:
- The sale of goods to Hari increases accounts receivable, which is an asset.
- The value of the accounts receivable account will increase by Rs. 15,000.

Liabilities:
- There is no effect on liabilities as a result of the credit sale to Hari.

Equity:
- The sale of goods to Hari will increase revenue, which is a component of equity.
- The value of the revenue account will increase by Rs. 15,000.

In summary, the accounting equation solutions for a credit sale to Hari are:
- Assets increase by Rs. 15,000.
- Liabilities remain unchanged.
- Equity increases by Rs. 15,000.

HTML Formatted Response:

• The sale of goods to Hari increases accounts receivable, which is an asset.


• The value of the accounts receivable account will increase by Rs. 15,000.

• There is no effect on liabilities as a result of the credit sale to Hari.

• The sale of goods to Hari will increase revenue, which is a component of equity.


• The value of the revenue account will increase by Rs. 15,000.

• Assets increase by Rs. 15,000.


• Liabilities remain unchanged.


• Equity increases by Rs. 15,000.

Journal entry for this equation.
Debtor A/c Dr.
To Sales A/c


Accounting Equation
Add in debtor and subtract from stock