Accounting Equation 1

Point out correct Accounting Equation

• Assets = Liabilities+ Capital

• Capital = Assets + liabilities

• Liabilities= Assets+ Capital

A buisness has capital of Rs.100000 and liabilities of Rs 20000 what is the amount of capital

• 120000

• 100000

• 80000

• 20000

Which of the following will cause increase in Capital

• Expenses

• Income

• Income and expenses both

• None of the above

Which of the following will cause decrease in capital

• Expenses

• Income

• Both income and expenses

• None of the above

Purchase of furniture for cash would

• Decrease in cash and increase in Assets(furniture)

• Decrease in cash and Decrease in Assets (furniture)

• Increase in cash and Decrease in Assets(furniture)

• Increase in cash and increase in Assets(furniture)

Sale of goods for cash would

• Increase in cash and increase in stock

• Decrease in cash and increase in stock

• Increase in cash and Decrease in stock

• Decrease in cash and increase in stock

The liabilities of a business are ₹ 2,30,000; the capital of the proprietor is ₹ 8,70,000. The total assets are:

• ₹ 6,40,000
  

• ₹ 11,00,000
  

• ₹ 4,40,000

• None of these

Which of the following transaction affecting Liability side of the equation?

• Goods purchased for cash ₹ 2,60,000
  

• Machinery purchased for cash ₹ 1,00,000

• Purchased Machinery from Raghu on credit ₹ 50000

• All the above

Which of the following transaction would cause reduction in cash and capital

• Paid salary Rs. 5000

• Received Bank interest Rs. 10000

• Purchased goods for cash Rs 30000

• Sold goods for cash Rs. 20000

Which of the following transactions affecting both sides of the equation?

• Business Started for cash ₹ 2,60,000
  

• Machinery purchased On credit ₹ 1,00,000
  

• Goods purchased on credit ₹ 2,60,000
  

• All of these