Rohan shook his head. “I borrowed ₹400 from you for the lemons and table.”
“I used up all the lemons and sugar (₹400). And I need to account for the wear on my table and pitcher? That feels silly.” Accounting For Financial Analysis And Planning Bbs 1st Year
Priya smiled. “Let’s go to the kitchen. You’re going to make lemonade.” Rohan shook his head
“Those are your (₹1,100). Now, did you pay for all of this yourself?” you’ve made a mistake.”
“That’s a ,” Priya said. “Your loan to me. The rest—₹700—is your Equity (your own contribution). So, Assets (₹1,100) = Liabilities (₹400) + Equity (₹700). That’s the golden rule. If your books ever go out of balance, you’ve made a mistake.”