# Accounting Equation,Financial Accounting I,BBA first semester,BBA-BI second semester

## Accounting Equation:

The accounting equation displays that all assets are either financed by borrowing money or paying with the money of the company’s shareholders. Thus, the accounting equation is: Assets = Liabilities +Shareholder Equity. The balance sheet is a complex display of this equation, showing that the total assets of a company are equal to the total of liabilities and shareholder equity. Any purchase or sale by an accounting equity has an equal effect on both sides of the equation, or offsetting effects on the same side of the equation. The accounting equation is also written as Liabilities = Assets – Shareholder Equity and Shareholder Equity = Assets – Liabilities.

### Expert Counselling Service Incorporation

 Assets = Liabilities and Owners Equity Date Cash A/R Supplies Equipment A/P N/P Capital Stock R/E 2-Mar 40000 40000 7-Mar 15000 15000 bal 55000 15000 40000 12-Mar 700 700 bal 55000 700 700 15000 40000 19-Mar 4000 4000 bal 55000 4000 700 700 15000 40000 4000 20-Mar (1,300) (1300) bal 53,700 4000 700 700 15000 40000 2700 22-Mar 1000 (1000) bal 54,700 3000 700 700 15000 40000 2700 26-Mar 2800 2800 bal 57,500 3000 700 700 15000 40000 5500 29-Mar (8000) 8000 bal 49,500 3000 700 8000 700 15000 40000 5500 30-Mar (3300) (3300) bal 46,200 3000 700 8000 700 15000 40000 2200 31-Mar (1400) (1400) 44,800 3000 700 8000 700 15000 40000 800 Total Assets=56500 Total liabilities +O/E=56500
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