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प्रश्न
Write a brief note on accounting equation approach of recording transactions.
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उत्तर
The relationship of assets with that of liabilities to outsiders and to owners in the equation form is known as the accounting equation.
Under the double entry system of book keeping, every transaction has a two-fold effect, which causes the changes in assets and liabilities or capital in such a way that an accounting equation is completed and equated.
Capital + Liabilities = Assets
Capital can also be called as owner’s equity and liabilities as outsider’s equity.
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संबंधित प्रश्न
Accounting equation signifies ___________.
‘Cash withdrawn by the proprietor from the business for his personal use’ causes ____________.
Which one of the following is representative personal account?
Prepaid rent is a ____________.
Write any one transaction which decreases the assets and decreases the liabilities
How are personal accounts classified?
Classify the accounts with suitable examples.
What are the three different types of personal accounts?
Complete the accounting equation.
Assets = Capital + Liabilities
₹ 1,00,000 = ₹ 80,000 + ?
Create an accounting equation on the basis of the following transactions:
- Started business with cash ₹ 80,000 and goods ₹ 75,000
- Sold goods to Shanmugam on credit for ₹ 50,000
- Received cash from Shanmugam in full settlement ₹ 49,000
- Salary outstanding ₹ 3,000
- Goods costing ₹ 1,000 given as charity
- Insurance premium paid ₹ 3000
- Out of insurance premium paid, prepaid is ₹ 500
