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Proved that the accounting equation is satisfied this received cash from pranav customer rupees 25500 and allowed him to a discount of rupees 500?
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Proved that the accounting equation is satisfied this received cash fr...
Introduction:
The accounting equation is a fundamental concept in accounting that states that the assets of a business are equal to the liabilities and equity. It is expressed as Assets = Liabilities + Equity. In this question, we need to prove that the accounting equation is satisfied after receiving cash from a customer and allowing him a discount.
Transaction Analysis:
The transaction involved in this question is as follows:
Received cash from Pranav customer = Rs. 25,500
Discount allowed to Pranav customer = Rs. 500
Calculation:
The amount of cash received from Pranav customer is Rs. 25,500. This amount will increase the cash balance of the business.
The discount allowed to Pranav customer is Rs. 500. This amount will decrease the revenue of the business.
Therefore, the impact of the transaction on the accounting equation is as follows:
Assets:
Cash + Rs. 25,500
Liabilities:
No impact on liabilities
Equity:
Revenue - Rs. 500
Conclusion:
After analyzing the transaction, we can see that the accounting equation is satisfied. The assets of the business have increased by Rs. 25,500, and the equity has decreased by Rs. 500, which balances the equation. Therefore, we can conclude that the accounting equation is satisfied in this transaction.
The accounting equation is a fundamental concept in accounting that states that the assets of a business are equal to the liabilities and equity. It is expressed as Assets = Liabilities + Equity. In this question, we need to prove that the accounting equation is satisfied after receiving cash from a customer and allowing him a discount.
Transaction Analysis:
The transaction involved in this question is as follows:
Received cash from Pranav customer = Rs. 25,500
Discount allowed to Pranav customer = Rs. 500
Calculation:
The amount of cash received from Pranav customer is Rs. 25,500. This amount will increase the cash balance of the business.
The discount allowed to Pranav customer is Rs. 500. This amount will decrease the revenue of the business.
Therefore, the impact of the transaction on the accounting equation is as follows:
Assets:
Cash + Rs. 25,500
Liabilities:
No impact on liabilities
Equity:
Revenue - Rs. 500
Conclusion:
After analyzing the transaction, we can see that the accounting equation is satisfied. The assets of the business have increased by Rs. 25,500, and the equity has decreased by Rs. 500, which balances the equation. Therefore, we can conclude that the accounting equation is satisfied in this transaction.
Community Answer
Proved that the accounting equation is satisfied this received cash fr...
Cash a/c dr 20000rs
discount allowed a/c dr 500rs
To parnava/c 20500rs
discount allowed a/c dr 500rs
To parnava/c 20500rs
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Proved that the accounting equation is satisfied this received cash from pranav customer rupees 25500 and allowed him to a discount of rupees 500?
Question Description
Proved that the accounting equation is satisfied this received cash from pranav customer rupees 25500 and allowed him to a discount of rupees 500? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Proved that the accounting equation is satisfied this received cash from pranav customer rupees 25500 and allowed him to a discount of rupees 500? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Proved that the accounting equation is satisfied this received cash from pranav customer rupees 25500 and allowed him to a discount of rupees 500?.
Proved that the accounting equation is satisfied this received cash from pranav customer rupees 25500 and allowed him to a discount of rupees 500? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Proved that the accounting equation is satisfied this received cash from pranav customer rupees 25500 and allowed him to a discount of rupees 500? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Proved that the accounting equation is satisfied this received cash from pranav customer rupees 25500 and allowed him to a discount of rupees 500?.
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