Acc week 2
•Download as PPT, PDF•
2 likes•1,292 views
The document discusses key concepts in accounting including the accounting equation, business transactions, source documents, and examples of common source documents. It provides examples of transactions and their impact on the accounting equation for a business. Common source documents that provide evidence of transactions are discussed, such as invoices, credit notes, payment vouchers, and bank statements.
Report
Share
Report
Share
![In Your Textbook... ,[object Object],[object Object],[object Object],UTAR/FBAF1023/Topic2](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
Recommended
Introduction to Financial Accounting Solutions
The document is a student solutions manual for an introduction to financial accounting textbook. It contains solutions to problems and exercises from 14 chapters of the textbook. The solutions manual provides step-by-step workings and explanations to help students learn financial accounting concepts and practice applying them to problems. It also contains sample financial statements and transaction worksheets with numerical examples worked through.
Introduction to Financial Accounting
This chapter introduces financial accounting and key concepts. Accounting identifies, measures, records, and communicates the economic activities of organizations. There are three main forms of business organizations - proprietorships owned by one person, partnerships owned by two or more individuals, and corporations which are separate legal entities owned by shareholders. Financial accounting presents financial information to external users through financial statements in accordance with generally accepted accounting principles. Transactions are analyzed using the accounting equation to record financial information.
Accountancy XII (Management) - Hissan 2078
This document contains 22 questions related to accountancy for a grade 12 pre-board exam. The questions cover a range of topics including features of private companies, types of preference shares, parties interested in financial statements, limitations of ratio analysis, differences between cost and financial accounting, variable costs, labor cost control, allocation and apportionment of overhead, journal entries for share applications and allotments, entries for forfeiture and re-issue of shares, purchase of assets and liabilities, issue and redemption of debentures, preparation of trading account, profit and loss account, balance sheet, adjustment entries and worksheet, ratios, funds from operations and cash flow statements, economic order quantity, wage calculations, cost sheets, tender sheets, and
Audit and investigations ii questions
This document contains 5 questions from an accounting exam. It asks the examinee to:
1) Summarize the major changes necessitated by the adoption of International Accounting Standards in Kenya.
2) Draft sections of an audit presentation addressing audit risk, materiality, sampling, and analytical review for a prospective client.
3) Comment on further audit considerations and potential effects on the audit report for matters relating to prepayments, inventory estimates, cash payments to laborers, and maintenance provisions at a holiday resort company.
4) Describe controls that could be written into a new computerized sales ledger program to minimize input and processing errors.
5) Detail matters to pay particular attention to as an
Model Questions SET- Accountancy XI (three set model questions)
This document contains a model set of accounting questions for Grade XI students. It includes 22 multiple choice and numerical questions covering various accounting concepts and transactions. The questions require students to prepare journal entries, ledger accounts, cash books, trial balances, and financial statements. Correct answers are to be provided in students' own words as much as possible. The exam is 3 hours long and carries a total of 100 marks.
Accounting Question Anaysis ICAB KL
This document provides past questions from accounting exams administered between May 2010 and December 2015. It includes questions related to distinguishing between capital and revenue expenditures, preparing basic financial statements, ledger and double entry accounting, and recording financial transactions. Specifically, it asks students to classify expenditures, define accounting concepts, prepare journal entries, income statements, balance sheets and account for various business transactions through ledger entries. The questions progressively build students' understanding of fundamental accounting principles.
Accounting answers
The document contains information regarding Robert Kanyarna's purchase of Premium Meat Suppliers Ltd. for Sh8 million on 1 October 2001. It provides details of the assets and liabilities acquired. It also provides financial information for the year ended 30 September 2002, including cash payments, bank payments, deposits, debtors, creditors, and ending stock values. The document requests preparation of bank and cash accounts, a trading and profit and loss account, and a balance sheet for the period. It also contains a similar case regarding Swara Sports Club involving preparation of forecast financial statements.
Golden Rules of Accounting. (Learn the Debit and Credit aspects of transactio...
A Power point presentation that discusses the Golden Rules of Accounting and the treatment of Real, Personal and Nominal Accounts. It illustrates with examples how various transactions can be made into journal entries using the basic principles of accounting.
Recommended
Introduction to Financial Accounting Solutions
The document is a student solutions manual for an introduction to financial accounting textbook. It contains solutions to problems and exercises from 14 chapters of the textbook. The solutions manual provides step-by-step workings and explanations to help students learn financial accounting concepts and practice applying them to problems. It also contains sample financial statements and transaction worksheets with numerical examples worked through.
Introduction to Financial Accounting
This chapter introduces financial accounting and key concepts. Accounting identifies, measures, records, and communicates the economic activities of organizations. There are three main forms of business organizations - proprietorships owned by one person, partnerships owned by two or more individuals, and corporations which are separate legal entities owned by shareholders. Financial accounting presents financial information to external users through financial statements in accordance with generally accepted accounting principles. Transactions are analyzed using the accounting equation to record financial information.
Accountancy XII (Management) - Hissan 2078
This document contains 22 questions related to accountancy for a grade 12 pre-board exam. The questions cover a range of topics including features of private companies, types of preference shares, parties interested in financial statements, limitations of ratio analysis, differences between cost and financial accounting, variable costs, labor cost control, allocation and apportionment of overhead, journal entries for share applications and allotments, entries for forfeiture and re-issue of shares, purchase of assets and liabilities, issue and redemption of debentures, preparation of trading account, profit and loss account, balance sheet, adjustment entries and worksheet, ratios, funds from operations and cash flow statements, economic order quantity, wage calculations, cost sheets, tender sheets, and
Audit and investigations ii questions
This document contains 5 questions from an accounting exam. It asks the examinee to:
1) Summarize the major changes necessitated by the adoption of International Accounting Standards in Kenya.
2) Draft sections of an audit presentation addressing audit risk, materiality, sampling, and analytical review for a prospective client.
3) Comment on further audit considerations and potential effects on the audit report for matters relating to prepayments, inventory estimates, cash payments to laborers, and maintenance provisions at a holiday resort company.
4) Describe controls that could be written into a new computerized sales ledger program to minimize input and processing errors.
5) Detail matters to pay particular attention to as an
Model Questions SET- Accountancy XI (three set model questions)
This document contains a model set of accounting questions for Grade XI students. It includes 22 multiple choice and numerical questions covering various accounting concepts and transactions. The questions require students to prepare journal entries, ledger accounts, cash books, trial balances, and financial statements. Correct answers are to be provided in students' own words as much as possible. The exam is 3 hours long and carries a total of 100 marks.
Accounting Question Anaysis ICAB KL
This document provides past questions from accounting exams administered between May 2010 and December 2015. It includes questions related to distinguishing between capital and revenue expenditures, preparing basic financial statements, ledger and double entry accounting, and recording financial transactions. Specifically, it asks students to classify expenditures, define accounting concepts, prepare journal entries, income statements, balance sheets and account for various business transactions through ledger entries. The questions progressively build students' understanding of fundamental accounting principles.
Accounting answers
The document contains information regarding Robert Kanyarna's purchase of Premium Meat Suppliers Ltd. for Sh8 million on 1 October 2001. It provides details of the assets and liabilities acquired. It also provides financial information for the year ended 30 September 2002, including cash payments, bank payments, deposits, debtors, creditors, and ending stock values. The document requests preparation of bank and cash accounts, a trading and profit and loss account, and a balance sheet for the period. It also contains a similar case regarding Swara Sports Club involving preparation of forecast financial statements.
Golden Rules of Accounting. (Learn the Debit and Credit aspects of transactio...
A Power point presentation that discusses the Golden Rules of Accounting and the treatment of Real, Personal and Nominal Accounts. It illustrates with examples how various transactions can be made into journal entries using the basic principles of accounting.
Accounting Equation Transaction Sample
The document discusses the accounting equation and how business transactions affect the equation. The accounting equation is Assets = Equities, where equities are made up of liabilities and proprietorship. Several examples are provided of different types of business transactions and how each affects the accounting equation by increasing or decreasing assets, liabilities, and proprietorship.
Single entry accounting system
Mr. Raj's records from March 2006 to March 2007 are presented using a single entry system. Depreciation is to be provided for plant and machinery and furniture. Statements of affairs as of March 2006 and March 2007 and a statement of profit and loss for the year ended March 2007 are to be prepared. Capital decreased from Rs. 116,900 to Rs. 114,700 while trading profit was Rs. 8,800 and net profit was Rs. 3,325.
Bba203 financial accounting
This document provides information about obtaining fully solved assignments. It includes a phone number and email address to contact for assistance and provides instructions to include semester and specialization when emailing. The document also notes that email conversation is preferred over repeated phone calls. It then provides a sample assignment question document that includes 6 questions related to accounting concepts, transactions, final accounts, bank reconciliation, and partnership accounts.
Financial Managerial Accounting 6th Edition Horngren Solutions Manual
Full download : https://alibabadownload.com/product/financial-managerial-accounting-6th-edition-horngren-solutions-manual/
Financial Managerial Accounting 6th Edition Horngren Solutions Manual
Mojakoe ak 1
This document contains an exam for a financial accounting course, including multiple choice questions, problems requiring adjusting journal entries, and problems requiring preparation of financial statements. The multiple choice questions cover topics like financial reporting objectives, accounting principles, conceptual framework, and accounting assumptions and concepts. The adjusting entry problems provide account balances and transactions to record. The financial statements problem provides ending account balances and requires preparation of a statement of comprehensive income and statement of financial position.
Management information Question Anaysis ICAB KL
This document provides past exam questions from May-June 2010 to November-December 2015 related to the fundamentals of costing. It includes 20 questions from Chapter 1 on topics like cost behavior, cost units, product costs vs. period costs, and classifications of fixed, variable and semi-variable costs. It also includes 11 questions from Chapter 2 on calculating unit costs using methods like FIFO, LIFO, weighted average and the effects of these methods on inventory valuation and profit determination.
Financial accounting mgt101 power point slides lecture 13
This document summarizes key topics from a lecture on financial accounting, including different types of vouchers (receipt, payment, journal), carrying account balances forward to the next period, and sample transactions recorded in February along with the resulting trial balance. Specific transactions recorded include depositing cash in the bank, reducing accrued expenses, paying accrued expenses by cheque, receiving cash from a debtor, providing a discount to a debtor, purchasing goods on credit, selling goods on credit, and placing funds in a fixed deposit.
Bba203 financial accounting...
This document provides information about obtaining fully solved assignments. It instructs students to send their semester and specialization name to an email address or call a phone number to receive assignments. It then provides an example assignment for BBA203 Financial Accounting, including sample questions and answers. The assignment covers topics like journal entries, accounting objectives, treatment of goodwill, differentiation of trade and cash discounts, features and objectives of final accounts, and preparation of trading, profit and loss statements and a balance sheet.
Accounting basic -LFU.Erbil
1. Accounting provides financial information to internal and external users to help them make decisions. It involves recording, classifying, measuring, and communicating financial data.
2. The basic accounting equation is Assets = Liabilities + Owner's Equity. It shows the resources owned (assets), claims against assets (liabilities), and ownership interest (owner's equity) of a business.
3. Transactions affect the basic accounting equation by increasing or decreasing at least one item on each side of the equation.
Ac Counting For Business
The document provides details about an accounting for business program by Afterscho☺ol Centre for Social Entrepreneurship. It includes instructions for participants to prepare trading and profit and loss accounts based on transaction details provided for a business owner named Goti for the year ended 31 March 2007. It also provides an additional information and asks participants to prepare a balance sheet as on that date.
Trial balances
Trial balances relates to the system of accounting volume ii, chapter three which i think will get support and comments with readers.
Ak mojakoe-20122013
This document contains an exam for an accounting course, including 5 questions. Question 1 has 5 statements related to accounting procedures and asks students to identify which accounting principles or conventions are violated. Question 2 provides financial information for a company and asks students to prepare a comprehensive income statement. Question 3 provides account balances and additional information, and asks students to prepare a statement of financial position. Question 4 provides various cash, receivable, and inventory information for a company, and asks students to calculate impairment losses, show journal entries, and disclose information in the financial statements. Question 5 provides inventory information for a company and asks students to calculate gross profit rate and prepare a schedule to compute inventory flood loss amounts.
Transactions
Mr. Edgar Detoya opened a car accessories business with an initial investment of P1,045,000. Over the next two years, he purchased inventory, supplies, and equipment, took out a bank loan, and sold merchandise and installation services to customers. By May 2013, the business had accounts receivable of P338,240, inventory of P350,000, accounts payable of P330,400, and the owner had withdrawn P30,000, leaving a VAT payable of P1,872.
Taxation principles: Dividend, Interest, Rental, Royalty and Other sources of...
1. The document discusses various types of income that are taxable under Section 4 of the Malaysian Income Tax Act 1967, including dividend income, interest income, rental income, royalty income, pension income, and other periodic payments.
2. It provides details on how each type of income is defined, taxed, exempted, and the applicable basis periods. Key changes discussed include Malaysia replacing its imputation system for taxing dividends with a single-tier system from 2008.
3. The document also examines deductions that can be claimed against income and losses from rented property, as well as differences in how income derived in Malaysia is taxed for residents versus non-residents.
Chapter 9
This document provides an overview of Real Property Gains Tax (RPGT) in Malaysia. Key points include:
- RPGT is a tax on capital gains from the disposal of real estate properties and shares in real property companies.
- The tax rates depend on how long the property was held, with higher rates for disposals within 2-5 years. Exemptions exist for primary residences and disposals after 5 years.
- Chargeable gains are calculated as the difference between the disposal price and acquisition price, with various additions and deductions to both prices defined.
- RPGT applies to individuals, companies, and other entities and persons defined as "chargeable persons" when they dispose of real
Accounting cycle in service company/ Cambodian Mekong University/Chhan Rathana
Accounting cycle in service company/ Cambodian Mekong University/Chhan RathanaRathana Rathanakraksmey
The document outlines the accounting cycle for a service company. It begins with an introduction that defines accounting and explains its importance. It then reviews the relevant literature, including the five main types of accounts (assets, liabilities, equity, revenues, expenses), chart of accounts, and the nine steps of the accounting cycle. The nine steps are analyzed in transactions, journalizing, posting to ledgers, preparing trial balances, adjusting entries, adjusted trial balances, financial statements, closing entries, and post-closing trial balances. The document provides an example of journalizing transactions, posting to accounts, and working through the full accounting cycle for a sample company. It concludes with the key role of accounting in classifying and managing financial information for organizationsFinancial Accounting dec 2011
This document provides instructions and questions for a financial accounting exam. It includes 5 questions covering various topics:
1. The objectives of financial statements, components of a complete set of financial statements, differences between accounting and tax depreciation, factors used to determine functional currency, and qualitative characteristics of financial information.
2. Preparation of an income statement and balance sheet for a sole proprietorship, requiring adjustments to various account balances.
3. Explanation of lease accounting for a machinery lease transaction, including presentation in financial statements.
4. Preparation of an income statement, statement of changes in equity, and balance sheet for a company, requiring numerous adjustments to account balances.
5. Identification
Adjusting the accounts
This document appears to be a presentation on accounting topics such as timing issues, deferrals, accruals, adjusting entries, and the basic accounting equation. It includes examples of adjusting journal entries, an unadjusted trial balance, adjusted trial balance, income statement, statement of owner's equity, and balance sheet. The presentation was created by students at the Institute of Information Technology and covers fundamental accounting concepts and financial statements.
Acc2051 5
The document provides a tutorial with solutions for ACC 205 Week 1-5 assignments on financial ratios. It includes 16 pages of tutorial solutions and 10 practice problems covering basic accounting concepts like identifying assets, liabilities, revenues and expenses; preparing basic financial statements; journal entries; adjusting entries; and bank reconciliations. The high-level tasks involve preparing basic financial statements, journal entries, adjusting entries and a bank reconciliation based on sample business transactions provided.
The Accounting Equation with Examples
Learn what is the accounting equation illustrated with examples. In this presentation, you will understand what the accounting equation is and the intuition behind.
The accounting equation
Every wonder what all the fuss is all about when accountant say it must balance. Well see what all the fuss is about by previewing this powerpoint
More Related Content
What's hot
Accounting Equation Transaction Sample
The document discusses the accounting equation and how business transactions affect the equation. The accounting equation is Assets = Equities, where equities are made up of liabilities and proprietorship. Several examples are provided of different types of business transactions and how each affects the accounting equation by increasing or decreasing assets, liabilities, and proprietorship.
Single entry accounting system
Mr. Raj's records from March 2006 to March 2007 are presented using a single entry system. Depreciation is to be provided for plant and machinery and furniture. Statements of affairs as of March 2006 and March 2007 and a statement of profit and loss for the year ended March 2007 are to be prepared. Capital decreased from Rs. 116,900 to Rs. 114,700 while trading profit was Rs. 8,800 and net profit was Rs. 3,325.
Bba203 financial accounting
This document provides information about obtaining fully solved assignments. It includes a phone number and email address to contact for assistance and provides instructions to include semester and specialization when emailing. The document also notes that email conversation is preferred over repeated phone calls. It then provides a sample assignment question document that includes 6 questions related to accounting concepts, transactions, final accounts, bank reconciliation, and partnership accounts.
Financial Managerial Accounting 6th Edition Horngren Solutions Manual
Full download : https://alibabadownload.com/product/financial-managerial-accounting-6th-edition-horngren-solutions-manual/
Financial Managerial Accounting 6th Edition Horngren Solutions Manual
Mojakoe ak 1
This document contains an exam for a financial accounting course, including multiple choice questions, problems requiring adjusting journal entries, and problems requiring preparation of financial statements. The multiple choice questions cover topics like financial reporting objectives, accounting principles, conceptual framework, and accounting assumptions and concepts. The adjusting entry problems provide account balances and transactions to record. The financial statements problem provides ending account balances and requires preparation of a statement of comprehensive income and statement of financial position.
Management information Question Anaysis ICAB KL
This document provides past exam questions from May-June 2010 to November-December 2015 related to the fundamentals of costing. It includes 20 questions from Chapter 1 on topics like cost behavior, cost units, product costs vs. period costs, and classifications of fixed, variable and semi-variable costs. It also includes 11 questions from Chapter 2 on calculating unit costs using methods like FIFO, LIFO, weighted average and the effects of these methods on inventory valuation and profit determination.
Financial accounting mgt101 power point slides lecture 13
This document summarizes key topics from a lecture on financial accounting, including different types of vouchers (receipt, payment, journal), carrying account balances forward to the next period, and sample transactions recorded in February along with the resulting trial balance. Specific transactions recorded include depositing cash in the bank, reducing accrued expenses, paying accrued expenses by cheque, receiving cash from a debtor, providing a discount to a debtor, purchasing goods on credit, selling goods on credit, and placing funds in a fixed deposit.
Bba203 financial accounting...
This document provides information about obtaining fully solved assignments. It instructs students to send their semester and specialization name to an email address or call a phone number to receive assignments. It then provides an example assignment for BBA203 Financial Accounting, including sample questions and answers. The assignment covers topics like journal entries, accounting objectives, treatment of goodwill, differentiation of trade and cash discounts, features and objectives of final accounts, and preparation of trading, profit and loss statements and a balance sheet.
Accounting basic -LFU.Erbil
1. Accounting provides financial information to internal and external users to help them make decisions. It involves recording, classifying, measuring, and communicating financial data.
2. The basic accounting equation is Assets = Liabilities + Owner's Equity. It shows the resources owned (assets), claims against assets (liabilities), and ownership interest (owner's equity) of a business.
3. Transactions affect the basic accounting equation by increasing or decreasing at least one item on each side of the equation.
Ac Counting For Business
The document provides details about an accounting for business program by Afterscho☺ol Centre for Social Entrepreneurship. It includes instructions for participants to prepare trading and profit and loss accounts based on transaction details provided for a business owner named Goti for the year ended 31 March 2007. It also provides an additional information and asks participants to prepare a balance sheet as on that date.
Trial balances
Trial balances relates to the system of accounting volume ii, chapter three which i think will get support and comments with readers.
Ak mojakoe-20122013
This document contains an exam for an accounting course, including 5 questions. Question 1 has 5 statements related to accounting procedures and asks students to identify which accounting principles or conventions are violated. Question 2 provides financial information for a company and asks students to prepare a comprehensive income statement. Question 3 provides account balances and additional information, and asks students to prepare a statement of financial position. Question 4 provides various cash, receivable, and inventory information for a company, and asks students to calculate impairment losses, show journal entries, and disclose information in the financial statements. Question 5 provides inventory information for a company and asks students to calculate gross profit rate and prepare a schedule to compute inventory flood loss amounts.
Transactions
Mr. Edgar Detoya opened a car accessories business with an initial investment of P1,045,000. Over the next two years, he purchased inventory, supplies, and equipment, took out a bank loan, and sold merchandise and installation services to customers. By May 2013, the business had accounts receivable of P338,240, inventory of P350,000, accounts payable of P330,400, and the owner had withdrawn P30,000, leaving a VAT payable of P1,872.
Taxation principles: Dividend, Interest, Rental, Royalty and Other sources of...
1. The document discusses various types of income that are taxable under Section 4 of the Malaysian Income Tax Act 1967, including dividend income, interest income, rental income, royalty income, pension income, and other periodic payments.
2. It provides details on how each type of income is defined, taxed, exempted, and the applicable basis periods. Key changes discussed include Malaysia replacing its imputation system for taxing dividends with a single-tier system from 2008.
3. The document also examines deductions that can be claimed against income and losses from rented property, as well as differences in how income derived in Malaysia is taxed for residents versus non-residents.
Chapter 9
This document provides an overview of Real Property Gains Tax (RPGT) in Malaysia. Key points include:
- RPGT is a tax on capital gains from the disposal of real estate properties and shares in real property companies.
- The tax rates depend on how long the property was held, with higher rates for disposals within 2-5 years. Exemptions exist for primary residences and disposals after 5 years.
- Chargeable gains are calculated as the difference between the disposal price and acquisition price, with various additions and deductions to both prices defined.
- RPGT applies to individuals, companies, and other entities and persons defined as "chargeable persons" when they dispose of real
Accounting cycle in service company/ Cambodian Mekong University/Chhan Rathana
Accounting cycle in service company/ Cambodian Mekong University/Chhan RathanaRathana Rathanakraksmey
The document outlines the accounting cycle for a service company. It begins with an introduction that defines accounting and explains its importance. It then reviews the relevant literature, including the five main types of accounts (assets, liabilities, equity, revenues, expenses), chart of accounts, and the nine steps of the accounting cycle. The nine steps are analyzed in transactions, journalizing, posting to ledgers, preparing trial balances, adjusting entries, adjusted trial balances, financial statements, closing entries, and post-closing trial balances. The document provides an example of journalizing transactions, posting to accounts, and working through the full accounting cycle for a sample company. It concludes with the key role of accounting in classifying and managing financial information for organizationsFinancial Accounting dec 2011
This document provides instructions and questions for a financial accounting exam. It includes 5 questions covering various topics:
1. The objectives of financial statements, components of a complete set of financial statements, differences between accounting and tax depreciation, factors used to determine functional currency, and qualitative characteristics of financial information.
2. Preparation of an income statement and balance sheet for a sole proprietorship, requiring adjustments to various account balances.
3. Explanation of lease accounting for a machinery lease transaction, including presentation in financial statements.
4. Preparation of an income statement, statement of changes in equity, and balance sheet for a company, requiring numerous adjustments to account balances.
5. Identification
Adjusting the accounts
This document appears to be a presentation on accounting topics such as timing issues, deferrals, accruals, adjusting entries, and the basic accounting equation. It includes examples of adjusting journal entries, an unadjusted trial balance, adjusted trial balance, income statement, statement of owner's equity, and balance sheet. The presentation was created by students at the Institute of Information Technology and covers fundamental accounting concepts and financial statements.
Acc2051 5
The document provides a tutorial with solutions for ACC 205 Week 1-5 assignments on financial ratios. It includes 16 pages of tutorial solutions and 10 practice problems covering basic accounting concepts like identifying assets, liabilities, revenues and expenses; preparing basic financial statements; journal entries; adjusting entries; and bank reconciliations. The high-level tasks involve preparing basic financial statements, journal entries, adjusting entries and a bank reconciliation based on sample business transactions provided.
What's hot (19)
Financial Managerial Accounting 6th Edition Horngren Solutions Manual
Financial Managerial Accounting 6th Edition Horngren Solutions Manual
Financial accounting mgt101 power point slides lecture 13
Financial accounting mgt101 power point slides lecture 13
Taxation principles: Dividend, Interest, Rental, Royalty and Other sources of...
Taxation principles: Dividend, Interest, Rental, Royalty and Other sources of...
Accounting cycle in service company/ Cambodian Mekong University/Chhan Rathana
Accounting cycle in service company/ Cambodian Mekong University/Chhan Rathana
Viewers also liked
The Accounting Equation with Examples
Learn what is the accounting equation illustrated with examples. In this presentation, you will understand what the accounting equation is and the intuition behind.
The accounting equation
Every wonder what all the fuss is all about when accountant say it must balance. Well see what all the fuss is about by previewing this powerpoint
Accounting - Lesson 3 : The Business Transactions
This document provides an overview of lesson 3 in an accounting course for beginners. It discusses 4 key learning objectives: 1) business transactions, 2) four transactions that affect the balance sheet, 3) four transactions that affect the income statement. It defines important terms like revenue, expense, assets, liabilities, and equity. It also summarizes the basic steps for analyzing a business transaction and the 8 most important types of transactions that affect financial statements.
Income From Other Sources
This document provides an overview of incomes chargeable to tax under the head "Income from other sources" in India. It discusses various types of incomes taxable under this residuary head, including dividends, lottery winnings, monetary gifts, non-monetary gifts, property received without/with inadequate consideration, rent, interest from securities, and amounts from life insurance policies. It also outlines expenses that are allowed and not allowed as deductions while computing income under this head, and provides a brief summary of a relevant case law on the tax treatment of loans given in the normal course of business.
Accounting - Lesson 2 : The Accounting Equation
This course covers the complete accounting cycle and is designed for those
who are interested in working in the areas of bookkeeping, clerical
accounting, finance or general office work or are looking to review their
accounting knowledge.Our accounting course teaches principles of
accounting, which are consistent across the globe. Even though there may
be minor differences in accounting principles in different countries, the core
accounting principles are the same.
The Accounting Equation - Introduction
The accounting equation states that assets must always equal the sum of capital and liabilities. It is the fundamental concept in accounting that the resources (assets) of a business are supplied by either its owners (capital) or others it owes (liabilities). Assets represent the resources owned, capital represents the owners' claim to assets, and liabilities represent amounts owed to non-owners. The equation must always balance, as it reflects two ways of looking at the same financial position of a business. Examples are given to illustrate how transactions affect the components of the equation while maintaining the balance.
INCOME FROM OTHER SOURCES
The document discusses income from other sources under the Income Tax Act of India. It defines income from other sources as the residual head of income that covers any income that does not fall under the other four specific heads.
It outlines various types of income chargeable under this head including certain dividend income, lottery/betting winnings, gifts exceeding Rs. 50,000, interest income, and any other income not covered elsewhere. It provides exemptions for gifts from relatives and those received on special occasions. The tax treatment of gifts to individuals and HUFs is described. Income chargeable under this head if not chargeable as business income is also summarized.
BASIC ACCOUNTING
This document provides an introduction to accounting basics. It defines accounting as the language of business that delivers financial information to various users. Accounting involves recording and interpreting business transactions expressed in monetary terms. The main purposes of accounting are to provide information about a business entity's results of operations, financial position, cash flows, and other useful information to both internal and external users for decision making. The key elements in accounting are assets, liabilities, capital/equity, income, and expenses, which are related through the accounting equation. Financial statements including the income statement, balance sheet, statement of cash flows, and notes to financial statements present the financial information in an organized manner and are interrelated.
Accounting Equation
The accounting equation states that a company's assets must equal the sum of its liabilities and equity. Assets are resources owned by a company such as land, equipment, buildings, cash, vehicles, stock, and amounts owed to the company by debtors. Liabilities represent creditors' claims on a company's assets such as bank loans, accrued expenses, and amounts owed to creditors. Equity represents the owners' claims on the company's assets through investments, revenues, and drawings on the business. The accounting equation must remain balanced after every business transaction.
Income From Other Sources
This is a presentation made by me to a batch of Indian tax officers at their training academy on 28th May 2012. It is on the head of income called "Income from Other Sources"
Accounting Equation-An Introduction
The document introduces the accounting equation, which states that for any business, assets must equal liabilities plus owner's equity. Assets are the resources owned, like cash, inventory, or property. Liabilities are debts owed, such as loans or unpaid expenses. Owner's equity represents the owner's claim to assets after liabilities are paid. The accounting equation also applies to individuals and must always balance.
Accounting equation
The accounting equation states that assets are equal to liabilities plus owner's equity. It represents the relationship between what a business owns (assets), what it owes (liabilities), and the owner's claim on the assets (owner's equity). Every transaction affects at least two accounts to maintain the balance of the accounting equation. The equation ensures that the sources of a business's assets are identified as either belonging to creditors (liabilities) or the owner (owner's equity).
Accounting equation and element
The document defines accounting, the accounting equation, and accounting elements.
The accounting equation expresses the relationship between assets, liabilities, and owners' equity, with the formula being Assets = Liabilities + Owners' Equity. Assets are resources owned or controlled by a company, while liabilities represent creditors' claims on assets. Owners' equity refers to ownership claims on total assets. There are two types of assets - current and fixed - and two types of liabilities - long term and current. Owners' equity includes elements like capital and reserves.
20 Effective Interview Questions for Accounting and Finance Professionals
The document lists 20 potential interview questions for accounting and finance professionals. The questions cover a range of topics including important skills for accountants, explaining complex processes, impacts of purchases on financial statements, defining big data, differences between accounts receivable and payable, journal entries, accounting software, developing business metrics, evaluating financial information, and recent changes in accounting standards.
Accounting Equation Presentation
The document discusses the accounting equation and how it is affected by business transactions.
The accounting equation states that total assets are equal to total liabilities plus owner's equity. It must always balance as transactions occur. Several examples are provided of how common business transactions like purchases, sales, expenses, and cash payments impact the accounting equation by increasing or decreasing different accounts. The procedure for preparing accounting equations based on transaction details is also outlined.
Basic principles of income tax
This is a short presentation for beginners wanting to learn a bit about the Indian Income-tax Act. It gives a snapshot of some of the basic terms in the Indian income-tax law. Hard core tax practitioners may kindly stay away! It's only the common man.
Viewers also liked (17)
20 Effective Interview Questions for Accounting and Finance Professionals
20 Effective Interview Questions for Accounting and Finance Professionals
Similar to Acc week 2
Bdc 101 05
Blake has account receivable of £600 which represents money owed to the business by debtors. Blake also has account payable of £7,000 which represents money owed by the business to creditors.
chap02.ppt
The document discusses accounting concepts related to debits and credits, including:
1. Setting up a chart of accounts to organize asset, liability, equity, revenue and expense accounts.
2. Analyzing business transactions and determining the proper debit and credit treatment based on whether the account balance will increase or decrease.
3. Preparing T-accounts and journal entries to record transactions, and ensuring debits equal credits.
4. Preparing a trial balance from the journal entries to check that accounts balance.
5. Using the trial balance to generate basic financial statements - the income statement, statement of owner's equity, and balance sheet.
Acc week 3
1. The document discusses key accounting concepts like the accounting equation, double-entry recording, T-accounts, debit and credit rules for different types of accounts.
2. It provides examples of recording business transactions like starting a business, purchases, expenses, revenues using T-accounts and following the double-entry system.
3. Special accounts like returns inwards, returns outwards are discussed which are used to record returns of goods from customers or suppliers.
FINANCIAL_ACCOUNTING_LECTURE.pptx
This document provides information about a financial accounting course at Eelo University in Borama, Somaliland. It introduces the lecturer, Professor Abdi Ali Hassan, who holds a B.Sc. and MBA in Strategic Management from the University of Nairobi. It also provides Professor Abdi's contact information.
MIDTERM COVERAGE.pptx
Accounting involves recording, classifying, and summarizing financial transactions and events. It defines transactions as financial events and establishes accounts for assets, liabilities, capital/equity, revenues and expenses. The accounting cycle includes identifying transactions, journalizing them, posting to ledger accounts, preparing a trial balance, adjusting entries, preparing financial statements, and closing entries at the end of the period.
20100712160725 chapter 2 double entry system
This document discusses key concepts in double-entry bookkeeping including accounts, debits and credits, and the basic steps in the recording process. It explains that an account tracks increases and decreases in specific items, and can be represented using a T-account format. It defines debits and credits, explaining that every transaction must have an equal debit and credit to maintain the accounting equation. The basic steps in the recording process are to journalize transactions, post to ledger accounts, and prepare a trial balance.
1 Managerial Accounting 1 Financial Accounting.ppt
The document discusses accounting methods and principles including:
- The cash and accrual bases of accounting and how they recognize revenues and expenses.
- Key principles like revenue recognition when risks/benefits transfer, expense recognition when incurred to generate revenue, and the matching principle.
- The accounting cycle of analyzing, recording, posting transactions, adjusting accounts, and preparing financial statements.
- How the fundamental accounting equation of assets = liabilities + equity works and how transaction analysis uses the duality concept.
AS Level and A Level Accounting Zimsec
The document provides an overview of accounting at AS and A Level, including:
- An introduction to double-entry bookkeeping, ledger accounts, debits and credits, and recording cash transactions.
- Financial accounting topics such as sole trader accounts, accounting principles, accruals/prepayments, depreciation, bad debts, and bank reconciliation.
- Partnership, company, and not-for-profit organization accounts.
- Elements of management accounting such as costing, budgeting, standard costing, and investment appraisal.
Accounting AS and A Level Zimbabwe Zimsec Cambridge
The document provides an overview of accounting at AS and A Level, including:
- An introduction to double-entry bookkeeping, ledger accounts, debits and credits, and recording cash transactions.
- Financial accounting topics such as sole trader accounts, accounting principles, accruals/prepayments, depreciation, bad debts, and bank reconciliation.
- Partnership, company, and not-for-profit organization accounts.
- Elements of management accounting such as costing, budgeting, standard costing, and investment appraisal.
Ch 3 powerpoint
The document discusses key accounting concepts such as assets, liabilities, equity, and how business transactions affect these accounts. It provides examples of transactions that involve cash investments, purchases, revenues and expenses. It also explains how to analyze transactions by identifying and classifying affected accounts and determining increases and decreases to keep the accounting equation in balance.
NCV 3 Mathematical Literacy Hands-On Support Slide Show - Module 2
This slide show complements the learner guide NCV 3 Mathematical Literacy Hands-On Training by San Viljoen, published by Future Managers. For more information visit our website www.futuremanagers.net
Accounting entrep
The document provides an overview of accounting concepts including the accounting equation, balance sheet, trading and profit and loss statement, and accounting for stock. It defines key terms like assets, liabilities, owner's equity, revenues, and expenses. It also explains how business transactions affect the accounting equation and financial statements. Specifically, it shows how transactions like introducing capital, borrowing money, purchasing assets, and buying/selling stock on credit impact the balance sheet and expanded accounting equation of Assets + Expenses = Owner's Equity + Revenues + Liabilities.
Bdc 101 03
This document provides an overview of Chapter 3 which discusses documents used in business transactions and the accounting cycle. It covers the relationship between business documents and accounting records, the steps in the recording process, types of business documents like invoices and journals, the ledger and trial balance. It also includes sample journal entries, ledger accounts, and a trial balance. The chapter aims to explain how business documents are used to record transactions and flow into the accounting records through journals and ledgers.
Acc week 4
The document discusses various books of original entry used in accounting, including journals, cash book, petty cash book, and their purposes. It explains how transactions are recorded in these books, such as recording sales, purchases, payments and receipts in the general journal and cash book. It also discusses accounting for cash discounts, bank transactions like overdraft, and loans.
Pert.1 Gambaran-umum (2).ppt
This chapter provides an overview of accounting. It defines accounting as a service activity that presents quantitative financial information about an economic entity to support economic decision making. It discusses the users of accounting information, the divisions of accounting, types of businesses, the accounting equation, and basic accounting concepts. It also provides examples of business transactions and the corresponding journal entries. Finally, it discusses the key financial statements - the income statement, statement of owner's equity, balance sheet, statement of cash flows, and notes - and how they are prepared from the accounting records and used for financial analysis.
Lecture_1_Accounting_ Elements & Accounting_Procedure.ppt
1. The accounting process involves identifying economic events, recording them in the accounting system, and preparing and communicating financial reports to both internal and external users.
2. The basic accounting equation states that assets must equal liabilities plus owner's equity. This equation must remain in balance at all times.
3. The double-entry system of accounting requires equal debit and credit entries to be made for every transaction to keep the accounting equation in balance.
Chapter two: The Recording Process (Financial Accounting)
Chapter two: Accounting Cycle
Accounting Principles 12e
Kimmel and Kieso
Accounting Global 9th Edition Horngren Solutions Manual
This document contains sample exercises and solutions for recording business transactions in journals and preparing trial balances. It includes multiple journal entries recording various business transactions, as well as trial balances for several sample businesses. The exercises cover key accounting concepts like debits and credits, normal balances of accounts, and preparing and analyzing trial balances.
Accounting
This document provides an overview of the accounting cycle and accounting information system. It begins with learning objectives that cover basic accounting terminology, double-entry rules, steps in the accounting cycle including journalizing, posting, trial balances and financial statements. The accounting cycle is then explained through examples of transactions being recorded in journals and posted to ledger accounts. The purpose of the accounting information system is also summarized as collecting, processing and disseminating financial information to interested parties like management.
Chapter Two LIC.ppt
The document provides an overview of the accounting cycle and key concepts in financial accounting. It discusses [1] what accounts are and how they are used to record business transactions, [2] the basic steps in the recording process including journalizing, posting to ledgers, and preparing a trial balance, and [3] key adjusting entries related to deferrals like prepaid expenses and unearned revenues, and accruals like accrued revenues and accrued expenses. The purpose is to explain the fundamentals of recording and reporting financial information according to generally accepted accounting principles.
Similar to Acc week 2 (20)
1 Managerial Accounting 1 Financial Accounting.ppt
1 Managerial Accounting 1 Financial Accounting.ppt
Accounting AS and A Level Zimbabwe Zimsec Cambridge
Accounting AS and A Level Zimbabwe Zimsec Cambridge
NCV 3 Mathematical Literacy Hands-On Support Slide Show - Module 2
NCV 3 Mathematical Literacy Hands-On Support Slide Show - Module 2
Lecture_1_Accounting_ Elements & Accounting_Procedure.ppt
Lecture_1_Accounting_ Elements & Accounting_Procedure.ppt
Chapter two: The Recording Process (Financial Accounting)
Chapter two: The Recording Process (Financial Accounting)
Accounting Global 9th Edition Horngren Solutions Manual
Accounting Global 9th Edition Horngren Solutions Manual
More from Shu Shin
02 Information System Security
The document provides an overview of cryptography concepts including encryption, decryption, symmetric cryptosystems, block ciphers, substitution ciphers, the one-time pad, and algorithms such as DES, Triple DES, AES, and others. Key points covered include Kerckhoffs's principle of keeping algorithms public and keys private, how symmetric encryption works between two parties with a shared key, methods of encrypting plaintext in blocks or as a bit stream, techniques like substitution and transposition ciphers, weaknesses of approaches like the Hill cipher, and the history and operation of standard block ciphers.
Information System Security introduction
The document defines information security and discusses its history and key concepts. It outlines the evolution of information security from physical security controls to modern approaches addressing confidentiality, integrity, and availability of information. Key aspects covered include definitions of security, the CIA triad/diamond models, cryptography, access control models, and digital signatures.
Chap12 part 1_
The document provides an overview of aggregate demand and aggregate supply models in economics. It defines aggregate demand and supply curves, and explains how each curve is derived. The aggregate demand curve slopes downward, as the price level and real GDP are inversely related due to interest rate, wealth, and trade effects. The aggregate supply curve slopes upward in the short-run due to sticky wages and prices. Shifts in aggregate demand and supply curves can occur due to changes in consumption, investment, government spending, net exports, technology or costs.
Chap11
This chapter discusses fiscal and monetary policy. It defines the multiplier effect as the ratio of change in output to a change in autonomous spending. An expansionary fiscal policy increases government spending or cuts taxes to stimulate the economy, while a contractionary policy decreases spending or raises taxes to curb inflation. Monetary policy involves changing interest rates and the money supply. An expansionary policy raises the money supply to boost output, while a contractionary policy lowers the money supply to reduce inflation. The chapter also discusses crowding-out, where higher government spending raises interest rates and lowers private investment.
Chap10
The document defines key macroeconomic concepts including aggregate expenditure, output, income, consumption, saving, investment, government spending, taxes, imports, exports, and equilibrium. It also discusses the consumption function, marginal propensity to consume, marginal propensity to save, and the multiplier effect.
Chap9
The document provides an overview of key economic concepts related to measuring national output and income. It defines Gross Domestic Product (GDP) as the total market value of all final goods and services produced within a country in a given period. GDP can be calculated using the expenditure approach (summing consumption, investment, government spending, and net exports) or the income approach (summing compensation, profits, rents, and other incomes). It also defines Gross National Product (GNP) and related terms and discusses limitations of using GDP as a measure.
Chap8
This document provides an introduction to macroeconomics. It discusses the key components and concerns of macroeconomics including inflation, output growth, unemployment, and income distribution. It also covers aggregate demand and supply, the circular flow model, and the roles of households, firms, government and the international sector in the macroeconomy. Government policies aim to achieve price stability, economic growth, full employment, and an equitable distribution of income.
Chap7
This document provides an overview of key concepts in market structure, including monopolistic competition and oligopoly. It discusses the characteristics of monopolistic competition, including differentiated products, free entry and exit, and firms as price takers. It also covers the short-run and long-run equilibrium of firms under monopolistic competition. For oligopoly, it defines the structure and discusses interdependent behavior among a small number of large firms, barriers to entry, and the use of game theory to analyze strategic interactions.
Chap6
The document summarizes key concepts about monopoly market structure:
1) A monopoly is characterized by a single seller, significant barriers to entry, and no close substitutes for the product. It faces a downward-sloping demand curve and can influence prices.
2) In the short-run, a monopoly will produce where marginal revenue equals marginal cost to maximize profits, earning normal profits, supernormal profits, or losses.
3) In the long-run, the monopoly may adjust its scale of production to maximize profits or minimize losses. It can earn economic profits but also imposes social costs like deadweight loss.
4) The document also discusses price discrimination, where a monopoly charges different prices for
Chap5
This chapter discusses perfect competition and profit maximization in perfect competition. It contains the following key points:
1. Under perfect competition, there are many small firms and buyers/sellers, homogeneous products, free entry and exit, and perfect information. Firms are price takers and maximize profits by producing where MR=MC.
2. In the short run, firms will shut down if P<AVC or operate to minimize losses if ATC>P>AVC. In the long run, zero economic profits are achieved through free entry and exit of firms.
3. External changes like shifting demand curves or new technology can impact market equilibrium prices and quantities in the short and long run through adjustments to
Chap4
1. The document discusses the production process of firms, including the concepts of production, costs, and profit maximization.
2. It explains that production involves transforming inputs into outputs using factors of production, with the goal of firms being to maximize profits.
3. The production process involves decisions about how much output to supply, which production technology to use, and how much of each input to demand.
Chap3
The document provides an overview of market efficiency and elasticity concepts. It defines key terms like equilibrium, supply and demand, market failure due to imperfect competition, public goods, externalities and imperfect information. It also discusses government intervention through price ceilings, price floors, rationing and other restrictions. It explains the concepts of consumer surplus, producer surplus and deadweight loss. Finally, it defines different types of elasticity including price elasticity of demand, income elasticity of demand, cross price elasticity of demand and price elasticity of supply.
Chap2
This document provides an overview of demand, supply, and market equilibrium concepts. It defines key terms like demand curve, supply curve, equilibrium price and quantity. It explains how shifts in demand or supply curves affect equilibrium. Specifically:
1) The law of demand and supply are introduced, which state that quantity demanded increases with lower price and quantity supplied increases with higher price.
2) Market equilibrium exists when quantity demanded equals quantity supplied. Disequilibrium can cause surplus or shortage.
3) A shift of the demand or supply curve changes the equilibrium price and quantity in the market. Both curves shifting can have varying effects depending on the direction and magnitude of the shifts.
Chap1
The document provides an overview of key economic concepts including:
1) Economics is defined as the study of how people use limited resources to fulfill unlimited wants. It involves choices under scarcity.
2) Microeconomics studies individual units like households and firms. Macroeconomics looks at the whole economy in terms of outputs, prices, and employment.
3) The production possibilities frontier (PPF) curve shows the maximum combinations of two goods an economy can produce with full employment of resources. Points inside the curve are attainable but inefficient, while points outside are unattainable.
Chap13
This document summarizes key concepts in international trade and exchange rates discussed in Chapter 13. It covers absolute and comparative advantage, types of trade barriers, components of the balance of payments, and exchange rate systems. Country A has an absolute advantage in cars and Country B has an advantage in rice, but Country B has a lower opportunity cost of cars, so it should specialize in car production. The current account records trade in goods, services, income, and transfers. Exchange rates can be fixed, flexible, or managed to balance trade and stability.
Chap13
This document provides an overview of international trade and exchange rates. It discusses absolute and comparative advantage, types of trade barriers, components of the balance of payments, and exchange rate systems. Absolute advantage refers to the ability to produce more of a good using fewer resources, while comparative advantage means a good can be produced at lower opportunity cost. Trade barriers include tariffs, quotas, export subsidies, and embargoes. The balance of payments records transactions in goods, services, and assets between a country and the rest of the world. Exchange rates can be fixed, flexible, or managed floating.
Chap11
This chapter discusses fiscal and monetary policy. It defines the multiplier effect as the ratio of change in output to a change in autonomous spending. An expansionary fiscal policy increases government spending or cuts taxes to boost output, while a contractionary policy decreases spending or raises taxes. Monetary policy involves changing interest rates and the money supply via tools like open market operations. Both expansionary and contractionary monetary policies aim to respectively increase or decrease output. The crowding-out effect refers to how increased government spending may raise interest rates and reduce private investment.
Chap10
The document defines key macroeconomic concepts including aggregate expenditure, output, income, consumption, saving, investment, government spending, taxes, imports, exports, and equilibrium. It also discusses the consumption function, marginal propensity to consume, marginal propensity to save, and the multiplier effect.
Chap9
The document provides an overview of key economic concepts related to measuring national output and income, including:
1) It defines Gross Domestic Product (GDP) as the total market value of all final goods and services produced within a country in a given period. GDP is calculated using the expenditure and income approaches.
2) The expenditure approach sums consumer spending (C), private investment (I), government spending (G), and net exports (X-M). The income approach sums wages, rents, profits, and other factor incomes.
3) Gross National Product (GNP) differs from GDP by including income from domestic factors working abroad, less income to foreign factors working domestically.
4) Real
Chap7
This document provides an overview of market structures including monopolistic competition and oligopoly. It discusses key characteristics of each structure such as product differentiation, barriers to entry, and interdependence between firms. The document also covers concepts like profit maximization, loss minimization, long-run equilibrium, price rigidity, game theory, and Nash equilibrium which are important for understanding firm behavior under different market conditions.
More from Shu Shin (20)
Acc week 2
- 1. Recording of Business Transactions – Accounting Equation and Source Documents Week 2 UTAR/FBAF1023/Topic2
- 3. UTAR/FBAF1023/Topic2 The Accounting Equation Assets = Liabilities + Owner’s Equity The resources owned by a business
- 4. UTAR/FBAF1023/Topic2 The Accounting Equation Assets = Liabilities + Owner’s Equity The rights of the creditors, which represent debts of the business
- 5. UTAR/FBAF1023/Topic2 The Accounting Equation Assets = Liabilities + Owner’s Equity The rights of the owners
- 6. UTAR/FBAF1023/Topic2 What is a business transaction? A business transaction is an economic event that directly changes a company’s financial condition or directly affects its results of operations.
- 8. UTAR/FBAF1023/Topic2 On November 1, 2006, Chris begins a business that will be known as NetSolutions .
- 9. UTAR/FBAF1023/Topic2 a. Chris brings in cash RM25,000 to start the business. Chris, Capital 25,000 Investment by Chris Cash 25,000 a. Assets Owner’s Equity = =
- 10. UTAR/FBAF1023/Topic2 b. NetSolutions paid RM20,000 for a land. Chris, Capital 25,000 Cash + Land 25,000 Bal. Assets Owner’s Equity = = b. – 20,000 +20,000 Bal. 5,000 20,000 25,000
- 11. UTAR/FBAF1023/Topic2 Accounts Chris, Cash + Supplies + Land Payable Capital Assets c. During the month, NetSolutions purchased supplies for RM1,350 and agreed to pay the supplier in the near future ( on account). Owner’s Liabilities + Equity = Bal. 5,000 20,000 25,000 c. + 1,350 + 1,350 = Bal. 5,000 1,350 20,000 1,350 25,000
- 12. UTAR/FBAF1023/Topic2 d. NetSolutions provided services to customers, earning fees of RM7,500 and received the amount in cash. d. + 7,500 + 7,500 Accounts Chris, Cash + Supplies + Land Payable Capital Assets Owner’s Liabilities + Equity Bal. 5,000 1,350 20,000 1,350 25,000 Fees earned = = Bal. 12,500 1,350 20,000 1,350 32,500
- 14. UTAR/FBAF1023/Topic2 Accounts Chris, Cash + Supplies + Land Payable Capital Assets f. NetSolutions paid RM950 to creditors during the month. Owner’s Liabilities + Equity = Bal. 8,850 1,350 20,000 1,350 28,850 f. – 950 – 950 = Bal. 7,900 1,350 20,000 400 28,850
- 15. UTAR/FBAF1023/Topic2 Accounts Chris, Cash + Supplies + Land Payable Capital Assets g. At the end of the month, Chris withdrew RM2,000 in cash from the business for personal use. Owner’s Liabilities + Equity Bal. 7,900 1,350 20,000 400 28,850 h. – 2,000 – 2,000 With-drawal = = Bal. 5,900 1,350 20,000 400 26,850
- 16. UTAR/FBAF1023/Topic2 Owner’s Equity Effects of Transactions on Owner’s Equity Owner’s withdrawals Expenses Decreased by Increased by Owner’s investments Revenues Net income