What will be the effect of the following on the Accounting Equation? Harish started business with cash ₹ 1,80,000.

What will be the effect of the following on the Accounting Equation?

(I) Harish started business with cash ₹ 1,80,000.

(ii) Purchased goods for cash ₹ 60,000 and on credit ₹ 30,000.

(iii) Sold goods for cash ₹ 40,000; costing ₹ 24,000.

(iv) Rent paid ₹ 5,000; and rent outstanding ₹ 2,000.

(v) Sold goods on credit ₹ 50,000 (costing ₹ 38,000.)

(vi) Salary paid in advance ₹ 3,000.

[Ans. Assets : Cash ₹ 1,52,000 + Stock ₹ 28,000 + Debtors ₹ 50,000 + Prepaid Expenses ₹ 3,000 = Liabilities : Creditors ₹ 30,000 + Outstanding Expenses ₹ 2,000 + Capital ₹ 2,01,000.]