Jaspal has purchased a car for 5,00,000 which he got financed from a Bank to the extent of 4,00,000. How will it be shown in the accounting equation?
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₹ 1,00,000 will be deducted from Asset (Cash/Bank); Asset (Car) will be shown it 5,00,000 and Bank Loan (on the Liabilities side) will be shown at 4,00,000.
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