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Prepare Accounting Equation from the following: Started business with Cash Rs 60,000. Rent received Rs 2000. Accrued interest Rs 500 Commission received in advance Rs 1000. Amount with drawn Rs 5000.?
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Prepare Accounting Equation from the following: Started business with ...
Accounting Equation:
Assets = Liabilities + Owner's Equity
Explanation:
Assets:
- Cash: Rs 60,000
- Rent received: Rs 2,000
- Accrued interest: Rs 500
- Commission received in advance: Rs 1,000
Total Assets = Rs 63,500
Liabilities: None
Owner's Equity:
- Capital (initial investment): Rs 60,000
- Amount withdrawn: Rs 5,000
Total Owner's Equity = Rs 55,000
Therefore, the Accounting Equation is:
Assets (Rs 63,500) = Liabilities (None) + Owner's Equity (Rs 55,000)
Explanation of Accounting Equation:
The Accounting Equation is a fundamental principle of accounting that displays the relationship between a company's assets, liabilities, and owner's equity. This equation shows that a company's assets are equal to the sum of its liabilities and owner's equity.
In this case, the assets of the business are worth Rs 63,500, which includes cash, rent received, accrued interest, and commission received in advance. The liabilities of the business are none. The owner's equity of the business is Rs 55,000, which includes the initial investment of Rs 60,000 and the amount withdrawn of Rs 5,000.
The Accounting Equation is important because it helps to ensure that a company's financial records are accurate and balanced. By maintaining a balance between assets, liabilities, and owner's equity, a company can accurately measure its financial health and make informed decisions about its future.
Assets = Liabilities + Owner's Equity
Explanation:
Assets:
- Cash: Rs 60,000
- Rent received: Rs 2,000
- Accrued interest: Rs 500
- Commission received in advance: Rs 1,000
Total Assets = Rs 63,500
Liabilities: None
Owner's Equity:
- Capital (initial investment): Rs 60,000
- Amount withdrawn: Rs 5,000
Total Owner's Equity = Rs 55,000
Therefore, the Accounting Equation is:
Assets (Rs 63,500) = Liabilities (None) + Owner's Equity (Rs 55,000)
Explanation of Accounting Equation:
The Accounting Equation is a fundamental principle of accounting that displays the relationship between a company's assets, liabilities, and owner's equity. This equation shows that a company's assets are equal to the sum of its liabilities and owner's equity.
In this case, the assets of the business are worth Rs 63,500, which includes cash, rent received, accrued interest, and commission received in advance. The liabilities of the business are none. The owner's equity of the business is Rs 55,000, which includes the initial investment of Rs 60,000 and the amount withdrawn of Rs 5,000.
The Accounting Equation is important because it helps to ensure that a company's financial records are accurate and balanced. By maintaining a balance between assets, liabilities, and owner's equity, a company can accurately measure its financial health and make informed decisions about its future.
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Prepare Accounting Equation from the following: Started business with ...
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Prepare Accounting Equation from the following: Started business with Cash Rs 60,000. Rent received Rs 2000. Accrued interest Rs 500 Commission received in advance Rs 1000. Amount with drawn Rs 5000.?
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Prepare Accounting Equation from the following: Started business with Cash Rs 60,000. Rent received Rs 2000. Accrued interest Rs 500 Commission received in advance Rs 1000. Amount with drawn Rs 5000.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Prepare Accounting Equation from the following: Started business with Cash Rs 60,000. Rent received Rs 2000. Accrued interest Rs 500 Commission received in advance Rs 1000. Amount with drawn Rs 5000.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Prepare Accounting Equation from the following: Started business with Cash Rs 60,000. Rent received Rs 2000. Accrued interest Rs 500 Commission received in advance Rs 1000. Amount with drawn Rs 5000.?.
Prepare Accounting Equation from the following: Started business with Cash Rs 60,000. Rent received Rs 2000. Accrued interest Rs 500 Commission received in advance Rs 1000. Amount with drawn Rs 5000.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Prepare Accounting Equation from the following: Started business with Cash Rs 60,000. Rent received Rs 2000. Accrued interest Rs 500 Commission received in advance Rs 1000. Amount with drawn Rs 5000.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Prepare Accounting Equation from the following: Started business with Cash Rs 60,000. Rent received Rs 2000. Accrued interest Rs 500 Commission received in advance Rs 1000. Amount with drawn Rs 5000.?.
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