Make accounting equation of this statement.

Dear Student,
Assets       = Liabilities + Capital
 (2000) (Cash) - ( 1500 ) Cash
 500  (Prepaid Rent) -  
Working notes -
The entry will be -
Prepaid Rent A/c   Dr 500
Rent A/c                 Dr 1500
To Cash A/c.                            2000

Therefore, Pre-paid rent(Rs 500) will be added in assets and cash (Rs 2000) will be subtracted from assets. Also, Rent (Rs 1500) will be subtracted from capital.

Regards        
         

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