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What is the basic accounting equation?

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Question

What is the basic accounting equation?

Answer in Brief
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Solution

The basic accounting equation is,

Assets = Liabilities + Capital

It means that all the monetary value of all assets of a firm are equal to the total claims, viz. owners and outsiders.

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Chapter 2: Theory Base of Accounting - Questions for practice [Page 43]

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NCERT Accountancy Financial Accounting Part 1 and 2 [English] Class 11
Chapter 2 Theory Base of Accounting
Questions for practice | Q 3 | Page 43
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