1.

Mr. Amal intends to start a computer software unit. He purchased a building for Rs. 3,00,000, for which a sum of Rs. 2,00,000 has been raised by availing a bank loan, and Rs. 75000 has been raised from his friend, Biju Mathew. Show this transaction by developing an accounting equation.

Answer»

Assets = Liabilities + Capital

TransactionsBuildingBank loan + Loan from friend + capital
3,00,0002,00,000+75,000 +2500



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