​Which of the following is not an accounting equation ?

Correct option is B

The correct answer is (b) Assets = Liabilities - Capital

Explanation:
• The fundamental accounting equation is:
Assets = Liabilities + Capital
• It shows that all assets owned by a business are financed by owners’ capital and external liabilities.
• Rearranging gives:

• Liabilities = Assets - Capital
• Capital = Assets - Liabilities
  • Hence, Assets = Liabilities - Capital is incorrect, as it disrupts the basic balance of the equation.

Information Booster:
• The accounting equation ensures the balance sheet always balances.
• It forms the basis of double-entry bookkeeping.
• Every transaction affects at least two accounts to maintain this equality.
• The equation reflects the financial position of a business at any point in time.
• The equality holds true because of the dual aspect concept in accounting.