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The accounting equation asset = capital + liabilities, which of the following is true. Ram has started business with 5,50,000 and has purchased goods worth 1,50,000 on credit
- a)7,00,000 = 5,50,000 + 1,50,000
- b)7,00,000 = 6,50,000 + 50,000
- c)5,50,000 = 7,00,000 - 1,50,000
- d)5,50,000 = 5,00,000 + 50,000
Correct answer is option 'A'. Can you explain this answer?
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The accounting equation asset = capital + liabilities, which of the fo...
Explanation:
The accounting equation represents the basic framework of accounting. The equation states that the assets of a business are equal to the sum of its liabilities and owner’s equity. The owner’s equity is also known as capital, which represents the owner’s investment in the business.
In the given scenario, Ram has started a business with 5,50,000. This amount represents the owner’s equity or capital in the business. Ram has also purchased goods worth 1,50,000 on credit. This represents a liability of the business.
Therefore, the accounting equation for Ram’s business can be represented as follows:
Assets = Liabilities + Capital
The assets of the business are the value of goods purchased on credit, which is 1,50,000.
The liabilities of the business are the amount owed for the goods purchased on credit, which is also 1,50,000.
The capital of the business is the amount invested by Ram, which is 5,50,000.
Hence, the accounting equation can be represented as follows:
1,50,000 (Assets) = 1,50,000 (Liabilities) + 5,50,000 (Capital)
Simplifying the equation, we get:
Assets = Liabilities + Capital
1,50,000 = 1,50,000 + 5,50,000
Therefore, the correct option is A) 7,00,000 = 5,50,000 + 1,50,000.
The accounting equation represents the basic framework of accounting. The equation states that the assets of a business are equal to the sum of its liabilities and owner’s equity. The owner’s equity is also known as capital, which represents the owner’s investment in the business.
In the given scenario, Ram has started a business with 5,50,000. This amount represents the owner’s equity or capital in the business. Ram has also purchased goods worth 1,50,000 on credit. This represents a liability of the business.
Therefore, the accounting equation for Ram’s business can be represented as follows:
Assets = Liabilities + Capital
The assets of the business are the value of goods purchased on credit, which is 1,50,000.
The liabilities of the business are the amount owed for the goods purchased on credit, which is also 1,50,000.
The capital of the business is the amount invested by Ram, which is 5,50,000.
Hence, the accounting equation can be represented as follows:
1,50,000 (Assets) = 1,50,000 (Liabilities) + 5,50,000 (Capital)
Simplifying the equation, we get:
Assets = Liabilities + Capital
1,50,000 = 1,50,000 + 5,50,000
Therefore, the correct option is A) 7,00,000 = 5,50,000 + 1,50,000.
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The accounting equation asset = capital + liabilities, which of the following is true. Ram has started business with 5,50,000 and has purchased goods worth 1,50,000 on credita)7,00,000 = 5,50,000 + 1,50,000b)7,00,000 = 6,50,000 + 50,000c)5,50,000 = 7,00,000 - 1,50,000d)5,50,000 = 5,00,000 + 50,000Correct answer is option 'A'. Can you explain this answer?
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The accounting equation asset = capital + liabilities, which of the following is true. Ram has started business with 5,50,000 and has purchased goods worth 1,50,000 on credita)7,00,000 = 5,50,000 + 1,50,000b)7,00,000 = 6,50,000 + 50,000c)5,50,000 = 7,00,000 - 1,50,000d)5,50,000 = 5,00,000 + 50,000Correct answer is option 'A'. Can you explain this answer? for CA CPT 2025 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about The accounting equation asset = capital + liabilities, which of the following is true. Ram has started business with 5,50,000 and has purchased goods worth 1,50,000 on credita)7,00,000 = 5,50,000 + 1,50,000b)7,00,000 = 6,50,000 + 50,000c)5,50,000 = 7,00,000 - 1,50,000d)5,50,000 = 5,00,000 + 50,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA CPT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The accounting equation asset = capital + liabilities, which of the following is true. Ram has started business with 5,50,000 and has purchased goods worth 1,50,000 on credita)7,00,000 = 5,50,000 + 1,50,000b)7,00,000 = 6,50,000 + 50,000c)5,50,000 = 7,00,000 - 1,50,000d)5,50,000 = 5,00,000 + 50,000Correct answer is option 'A'. Can you explain this answer?.
The accounting equation asset = capital + liabilities, which of the following is true. Ram has started business with 5,50,000 and has purchased goods worth 1,50,000 on credita)7,00,000 = 5,50,000 + 1,50,000b)7,00,000 = 6,50,000 + 50,000c)5,50,000 = 7,00,000 - 1,50,000d)5,50,000 = 5,00,000 + 50,000Correct answer is option 'A'. Can you explain this answer? for CA CPT 2025 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about The accounting equation asset = capital + liabilities, which of the following is true. Ram has started business with 5,50,000 and has purchased goods worth 1,50,000 on credita)7,00,000 = 5,50,000 + 1,50,000b)7,00,000 = 6,50,000 + 50,000c)5,50,000 = 7,00,000 - 1,50,000d)5,50,000 = 5,00,000 + 50,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA CPT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The accounting equation asset = capital + liabilities, which of the following is true. Ram has started business with 5,50,000 and has purchased goods worth 1,50,000 on credita)7,00,000 = 5,50,000 + 1,50,000b)7,00,000 = 6,50,000 + 50,000c)5,50,000 = 7,00,000 - 1,50,000d)5,50,000 = 5,00,000 + 50,000Correct answer is option 'A'. Can you explain this answer?.
Solutions for The accounting equation asset = capital + liabilities, which of the following is true. Ram has started business with 5,50,000 and has purchased goods worth 1,50,000 on credita)7,00,000 = 5,50,000 + 1,50,000b)7,00,000 = 6,50,000 + 50,000c)5,50,000 = 7,00,000 - 1,50,000d)5,50,000 = 5,00,000 + 50,000Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA CPT.
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The accounting equation asset = capital + liabilities, which of the following is true. Ram has started business with 5,50,000 and has purchased goods worth 1,50,000 on credita)7,00,000 = 5,50,000 + 1,50,000b)7,00,000 = 6,50,000 + 50,000c)5,50,000 = 7,00,000 - 1,50,000d)5,50,000 = 5,00,000 + 50,000Correct answer is option 'A'. Can you explain this answer?, a detailed solution for The accounting equation asset = capital + liabilities, which of the following is true. Ram has started business with 5,50,000 and has purchased goods worth 1,50,000 on credita)7,00,000 = 5,50,000 + 1,50,000b)7,00,000 = 6,50,000 + 50,000c)5,50,000 = 7,00,000 - 1,50,000d)5,50,000 = 5,00,000 + 50,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of The accounting equation asset = capital + liabilities, which of the following is true. Ram has started business with 5,50,000 and has purchased goods worth 1,50,000 on credita)7,00,000 = 5,50,000 + 1,50,000b)7,00,000 = 6,50,000 + 50,000c)5,50,000 = 7,00,000 - 1,50,000d)5,50,000 = 5,00,000 + 50,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The accounting equation asset = capital + liabilities, which of the following is true. Ram has started business with 5,50,000 and has purchased goods worth 1,50,000 on credita)7,00,000 = 5,50,000 + 1,50,000b)7,00,000 = 6,50,000 + 50,000c)5,50,000 = 7,00,000 - 1,50,000d)5,50,000 = 5,00,000 + 50,000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA CPT tests.
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