04-21-2011, 11:29 PM
“The following Accounting Equation has been derived from the balances extracted from the accounting records of Mr. Entrepreneur as on January 1st, 2011:
Cash + Debtors + Stock + Building + Furniture + Other Fixed Assets = Creditors + Owner’s Equity
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
5,000 7,500 15,500 75,000 3,500 18,500 50,000 75,000
On the same day, he borrowed Rs. 30,000 from his wife and brought that money into the business. You are required to show the effect of this transaction upon the above equation by following the format.”
Cash + Debtors + Stock + Building + Furniture + Other Fixed Assets = Creditors + Owner’s Equity
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
5,000 7,500 15,500 75,000 3,500 18,500 50,000 75,000
On the same day, he borrowed Rs. 30,000 from his wife and brought that money into the business. You are required to show the effect of this transaction upon the above equation by following the format.”