The accounting equation
- 1. Assets = Liabilities + Equity 1. Invest +10,000 +10,000 2. Borrow +30,000 +30,000 3. Purchase +20,000 +20,000 4. Sold - 20,000 - 20,000 Goods +40,000 +40,000 5. Pay Note - 20,000 - 20,000 Totals 60,000 30,000 30,000 The Accounting Equation