Accounting Equation Problem 14


Following transactions are given:

  1. Invested Rs. 90,000 in business.
  2. Salaries paid Rs. 5,000.
  3. Wages outstanding Rs. 7,000.
  4. Borrowed a loan Rs. 10,000.
  5. Rent paid in advance Rs. 2,000.
Required: Accounting Equation


S.No.TransactionsAssets=Capital+Liabilities
1Invested in business+90,000+90,0000
Beginning Equation90,000=90,000+0
2Salaries paid-5,000-5,0000
New Equation85,000=85,000+0
3Wages outstanding0-7,000+7,000
New Equation85,000=78,000+7,000
4Borrowed a loan+10,0000+10,000
New Equation95,000=78,000+17,000
5Rent paid in advance-2,000
+2,000
00
Final Equation95,000=78,000+17,000
Note: If anybody have confusion in above given solution then comment me below.



Accounting Equation Problem 14 Accounting Equation Problem 14 Reviewed by Ashim Shrestha on April 17, 2018 Rating: 5

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