1. DAKSH ACADEMY JAY MATA DI MOB- 9717327137
Accounting Equation
starting cash increase cash cash↓ capital↓
business withdrawings
capital increase goods stock↓ capital↓
recd. in
prepaid cash↓ ppexp(A)↑ cash↑ recd .adv(L)↑
dvance
paid on cash recd. on cash↑ capital↑
expanses cash↓ capital↓ incomes time
time
outstanding o/s liab.↑ capital↓ accrued acc.inc(A)↑ capital↑
loan recd. cash ↑ liab. ↑ asset decreases
liability depreciation
loan paid cash↓ liab.↓ capital decreases
on capital CAPITAL ↓ ↑ on CASH CASH↓ STOCK ↑
PURCHASE
interest
GOODS
on
withdrawings
CAPITAL ↑ ↓ on CREDIT CRDTR ↑STOCK↑
ON CASH↑ STOCK↓
PROFIT CAP↑
on CASH
CASH↑ STOCK↓ Purchase cash decreases
ON LOSS
CAP↓ asset for
SALES
ON DBTR↑ STCK↓ personal
PROFIT CAP↑ use(drw) capital decreases
on CREDIT
DBTR↑ STCK↓
ON LOSS CAP↓
C L A TA= C+P+L AE is mathematical expression
TE=OE +CE which shows that A AND L of a
A L C
OC=CC+D-AC-P firm are equal.
A C L
CC=OC+AC+P-D ☺☺☺☺☺☺☺☺☺
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