Accounting equation remains intact under all circumstances. Justify the statement with the help of an example - Bzziii

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Accounting equation remains intact under all circumstances. Justify the statement with the help of an example









According to the concept of dual aspect, every transaction together, has two effects of equal amount, i.e. debit and credit. The reason behind this statement is that an accounting equation is a form of dual aspects concept. An accounting equation signifies, A= L+C, which stands for Assets, Liabilities, and Capital.

 Mr Arun starts a business(retail shop) with rs. 1,00,000 and he credit purchase of goods for rs 30,000 so, Accounting equation for Arun is as follows

Asset = liabilities + Capital

= Asset = Rs.(1,00,000 + 30,000)

= Rs.1,30,000 = Rs.1,30,000



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