Suppose P start a business with $R s . 50, 000$ cash and then buys furniture from F.F. Co. on credit for $R s . 2, 000$ . Now, the accounting equation
$A s s e t s = C a p i t a l + L i a b i l i t i e s$ will be __________________.

52, 000 = 50, 000 + 2, 000

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50, 000 = 50, 000 + 0

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50, 000 = 48, 000 + 2, 000

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48, 000 = 50, 000 - 2, 000

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Solution

The correct option is A $52, 000 = 50, 000 + 2, 000$
Here, Total Assets = (Cash)50,000 + 2000 (Furniture) and Liabilities (creditor) = 2000
Therefore, accounting equation is
Assets=Capital+Liabilities
52,000 = 50,000 + 2,000

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Suppose P start a business with Rs.50,000 cash and then buys furniture from F.F. Co. on credit for Rs.2,000. Now, the accounting equationAssets=Capital+Liabilities will be __________________.

The correct option is A 52,000=50,000+2,000Here, Total Assets = (Cash)50,000 + 2000 (Furniture) and Liabilities (creditor) = 2000Therefore, accounting equation is Assets=Capital+Liabilities52,000 = 50,000 + 2,000

Suppose P start a business with $R s . 50, 000$ cash and then buys furniture from F.F. Co. on credit for $R s . 2, 000$ . Now, the accounting equation
$A s s e t s = C a p i t a l + L i a b i l i t i e s$ will be __________________.

The correct option is A $52, 000 = 50, 000 + 2, 000$
Here, Total Assets = (Cash)50,000 + 2000 (Furniture) and Liabilities (creditor) = 2000
Therefore, accounting equation is
Assets=Capital+Liabilities
52,000 = 50,000 + 2,000