Unit-3 Basic Accounting Terms and Concepts

This unit explains some of the terms which are commonly used in accounting and also the basic concepts underlying the accounting system.

Present the following in the form of an Accounting Equation.
Machinery Rs. 20,000
Cash Rs. 5,000
Capital Rs. 20,000
Creditors Rs. 5,000

Answer

Capital+ Liabilities = Assets

Capital Rs. 20,000 + Creditors Rs. 5,000 = Machinery Rs. 20,000 + Cash Rs. 5,000