Question

A) started business depositing Rs.100000 into bank.

b) paid wages Rs 10000
c) purchased goods on credit Rs 5000.
d) Received house rent Rs 2000
Required: accounting equation​

a) Assets = Liabilities + Owner's Equity
b) Income = Expenses
c) Debit = Credit
d) Profit = Revenue - Expenses

Answer 1

A bank's T-account represents its assets and liabilities. The left side shows the assets, which include reserves, government bonds, and loans. The right side represents liabilities, primarily deposits made by customers. The net worth is calculated by subtracting liabilities from assets.

Step-by-step explanation:

A bank's T-account is a visual representation of its assets and liabilities. The left side of the T-account represents the bank's assets, which include reserves, government bonds, and loans. On the right side, the bank's liabilities are shown, which primarily consist of deposits made by customers. The net worth of the bank is calculated by subtracting total liabilities from total assets. This net worth is included on the liabilities side to balance the T-account. In this case, the bank's T-account would look like this:

Assets:

• Reserves: $50
• Government bonds: $70
• Loans: $500

Liabilities:

• Deposits: $400

Net Worth:

• Net Worth: $220