Following transactions are given:
- Invested Rs. 90,000 in business.
- Salaries paid Rs. 5,000.
- Wages outstanding Rs. 7,000.
- Borrowed a loan Rs. 10,000.
- Rent paid in advance Rs. 2,000.
Required: Accounting Equation
S.No. | Transactions | Assets | = | Capital | + | Liabilities |
---|---|---|---|---|---|---|
1 | Invested in business | +90,000 | +90,000 | 0 | ||
Beginning Equation | 90,000 | = | 90,000 | + | 0 | |
2 | Salaries paid | -5,000 | -5,000 | 0 | ||
New Equation | 85,000 | = | 85,000 | + | 0 | |
3 | Wages outstanding | 0 | -7,000 | +7,000 | ||
New Equation | 85,000 | = | 78,000 | + | 7,000 | |
4 | Borrowed a loan | +10,000 | 0 | +10,000 | ||
New Equation | 95,000 | = | 78,000 | + | 17,000 | |
5 | Rent paid in advance | -2,000 +2,000 | 0 | 0 | ||
Final Equation | 95,000 | = | 78,000 | + | 17,000 |
Accounting Equation Problem 14
Reviewed by Ashim Shrestha
on
April 17, 2018
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