Answer :
Answer:
Explanation:To prove that the Accounting Equation is satisfied in all the following transactions of Sameer, we need to verify that the equation:
\[ \text{Assets} = \text{Liabilities} + \text{Owner's Equity} \]
remains balanced after each transaction.
Here are the given transactions:
1. Started Business with cash ₹1,00,000.
2. Paid rent in cash ₹10,000.
Let's analyze each transaction step-by-step:
### Transaction 1: Started Business with Cash ₹1,00,000
- **Assets**: Cash increases by ₹1,00,000.
- **Owner's Equity**: Capital increases by ₹1,00,000 (since it's Sameer's own money).
The equation after Transaction 1:
\[ \text{Assets} = ₹1,00,000 \]
\[ \text{Liabilities} = ₹0 \]
\[ \text{Owner's Equity} = ₹1,00,000 \]
So, \( \text{Assets} = \text{Liabilities} + \text{Owner's Equity} \)
\[ ₹1,00,000 = ₹0 + ₹1,00,000 \]
\[ ₹1,00,000 = ₹1,00,000 \]
The equation is balanced.
### Transaction 2: Paid Rent in Cash ₹10,000
- **Assets**: Cash decreases by ₹10,000.
- **Owner's Equity**: Rent expense decreases Owner's Equity by ₹10,000.
The equation after Transaction 2:
\[ \text{Assets} = ₹1,00,000 - ₹10,000 = ₹90,000 \]
\[ \text{Liabilities} = ₹0 \]
\[ \text{Owner's Equity} = ₹1,00,000 - ₹10,000 = ₹90,000 \]
So, \( \text{Assets} = \text{Liabilities} + \text{Owner's Equity} \)
\[ ₹90,000 = ₹0 + ₹90,000 \]
\[ ₹90,000 = ₹90,000 \]
The equation is balanced.
### Conclusion
Both transactions maintain the balance of the Accounting Equation:
1. After starting the business with cash, the equation is balanced at ₹1,00,000 each for Assets and Owner's Equity.
2. After paying rent, the equation is balanced at ₹90,000 each for Assets and Owner's Equity.
Thus, the Accounting Equation is satisfied for all the given transactions of Sameer.