Opened a bank account by depositing cash ₹ 10,000. Explain accountin

1.	Opened a bank account by depositing cash ₹ 10,000. Explain accounting treatment based on equation for this transaction.
Answer» Effects : (i) Bank is receiver → Bank balance (Asset) increases (ii) Cash goes out → Cash (Asset) decreases Conclusion : → Assets have increased and decreased by the same amount of ₹ 10,000. → Thus, equation is satisfied.

Opened a bank account by depositing cash ₹ 10,000. Explain accounting treatment based on equation for this transaction.

Answer»

Effects :

(i) Bank is receiver → Bank balance (Asset) increases
(ii) Cash goes out → Cash (Asset) decreases

Conclusion :

→ Assets have increased and decreased by the same amount of ₹ 10,000.
→ Thus, equation is satisfied.