In this article, we have provided the Question wise solution of all Questions of Chapter 2 – Accounting Equations – D.K. Goel -(Class 11 – ICSE), But first of all, we have explained the meaning of Accounting Equation: –
What is the Accounting Equation:
The Accounting Equation is the basis of the double-entry system of accounting. The double-entry system means every business transaction has two aspects one is the Debit and another is the Credit. Example: – If we want to buy something like coke, pizza or burger we have to pay cash for these items, So in this transaction, we are receiving food and paying cash which means we are doing two jobs, that is why it is called double-entry system.
In the double-entry system, every Debit amount should be equal to the Credit amount Because :
The Business can receive cash or assets from two sources, one from an owner and another is a third party. When it is received from an owner this is called Capital and when received from third parties then it is called liabilities.
So, in the Accounting Equation, Cash or Assets are always Equal to the Capital and Liabilities of the Business.
“Assets = Liabilities + Capital“
For more Explanation please check out the following link: –
https://tutorstips.com/accounting-equation
Chapter 2 – Accounting Equations – D.K. Goel -(Class 11 – ICSE)- Solution
Question-wise solution of all Questions of Chapter 2 – Accounting Equations – D.K. Goel -(Class 11 – ICSE)– Solutions are shown below: –