Which of the following accounting equation is correct —

CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · December 2013

(A) Capital (₹15,000) = Fixed Assets (₹12,000) + Cash (₹4,000)

(B) Trade payables (₹3,000) + Capital (₹17,000)+ Bills Payable (₹4,000) = Fixed Assets (₹20,000)

(C) Capital (₹15,000) = Cash (₹3,000) + Fixed Assets (₹9,000)

(D) Trade payables (₹8,000) + Capital (₹7,000) = Fixed Assets (₹8,000) + Cash at Bank (₹4,000) + Cash (₹3,000).

Answer & Explanation:

Correct Answer: Option (D)

Correct answer: (D) Trade payables (₹8,000) + Capital (₹7,000) = Fixed Assets (₹8,000) + Cash at Bank (₹4,000) + Cash (₹3,000)..

Topics: Fundamentals of Accounting and Auditing