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Overview of an Account

Purchased a t...

Question

Purchased a typewriter for official and Personal use of the proprietor in terms of accounting equation

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Solution

Dear Student

If the typewriter is purchased for official use personal use then it won't be recorded in the accounting equation.
However, if it is used for official purpose then it shall be recorded as an increase in the asset as typewriter against the decrease in the asset as cash outflow.

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Similar questions

Q. Show the accounting equation on the basis of following transactions:
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(ii) Purchased goods from Gopal on Credit ₹ 40,000.
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