Write a brief note on accounting equation approach of recording transactions.

What is an Account? Classify the accounts with suitable examples.

What are the three different types of personal accounts?

What is the accounting treatment for insurance premium paid on the life of the proprietor?

State the principles of double entry system of book keeping.

Briefly explain about steps in journalising.

What is double entry system? State its advantages.

Complete the accounting equation.

(a) Assets	=	Capital + Liabilities
Rs.1,00,000	=	Rs.80,000 + ?
(b) Assets	=	Capital + Liabilities
Rs.2,00,000	=	? + Rs.40,000
(c) Assets	=	Capital + Creditors
?	=	Rs.60,000 + Rs.80,000

Show the accounting equation on the basis of the following transactions:
i) Ramya started business with Cash   Rs.25,000
ii) Purchases goods from Harsha   Rs.20,000
iii) Sold goods to Amala costing Rs.18,000    Rs.25,000
iv) Ramya withdrew from business   Rs.5,000

Show the accounting equation on the basis of the following:
(a) Started business with cash Rs 60,000
(b) Goods bought on credit from Ramesh Rs 20,000
(c) Purchased furniture for cash Rs 15,000
(d) Paid creditors by cash Rs 500