Accounting equation Q7

Accounting equation Q7 accounting has certain limitations. Explain any three such limitations. Which basis Of accounting gives a correct picture Of Oik.rating results and financial position ofa Finn? Write any two advantages of that system of Accounting. Prepare an accounting equg!ion on the basis of following transactions: a. Started usiness with cash Rs. 50,000, and goods Rs 30,000 b. Paid salary Rs 5,000 c. Purchased goods for cash Rs. 10,000 and on credit Rs 20,000. d. Goods costing Rs 25,000 sold at profit of on cost out of which Rs 10,000 received in cash. Trial balance of Mahender did not agree. Pass Journal entries the following a. Sales Return Book overcast by Rs 7,500.