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Accounting Equation - Class XI
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Which of the following is accounting equation?
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A
Capital = Assets - Liabilities
💡 Explanation:
The basic accounting equation, also called as the balance sheet equation, represents the relationship between the assets, liabilities and capital of a business. It is the foundation for the double entry book-keeping system. For each transaction, the total debit equals the total credit. Following is the accounting equation:
Asset = Liability + Capital.