Accounting equation(11th A/C)
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DAKSH ACADEMY JAY MATA DI MOB- 9717327137 AMIT KUMAR < CS (P), M.COM. > Page 1 Accounting Equation starting business cash increase capital increase withdrawings cash cash↓ capital↓ goods stock↓ capital↓ expanses prepaid cash↓ ppexp(A)↑ paid on time cash↓ capital↓ outstanding o/s liab.↑ capital↓ incomes recd. in dvance cash↑ recd .adv(L)↑ cash recd. on time cash↑ capital↑ accrued acc.inc(A)↑ capital↑ liability loan recd. cash ↑ liab. ↑ loan paid cash↓ liab.↓ depreciation asset decreases capital decreases interest on capital CAPITAL ↓ ↑ on withdrawings CAPITAL ↑ ↓ PURCHASE GOODS on CASH CASH↓ STOCK ↑ on CREDIT CRDTR ↑STOCK↑ SALES on CASH ON PROFIT CASH↑ STOCK↓ CAP↑ ON LOSS CASH↑ STOCK↓ CAP↓ on CREDIT ON PROFIT DBTR↑ STCK↓ CAP↑ ON LOSS DBTR↑ STCK↓ CAP↓ C L A A L C A C L Purchase asset for personal use(drw) cash capital decreases decreases TA= C+P+L AE is mathematical expression TE=OE +CE which shows that A AND L of a OC=CC+D-AC-P firm are equal. CC=OC+AC+P-D ☺☺☺☺☺☺☺☺☺
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Transcript of Accounting equation(11th A/C)
DAKSH ACADEMY JAY MATA DI MOB- 9717327137
AMIT KUMAR < CS (P), M.COM. > Page 1
Accounting Equation
starting business
cash increase
capital increasewithdrawings
cash cash↓ capital↓
goods stock↓ capital↓
expanses
prepaid cash↓ ppexp(A)↑
paid on time cash↓ capital↓
outstanding o/s liab.↑ capital↓
incomes
recd. in dvance cash↑ recd .adv(L)↑
cash recd. on time cash↑ capital↑
accrued acc.inc(A)↑ capital↑
liabilityloan recd. cash ↑ liab. ↑
loan paid cash↓ liab.↓depreciation
asset decreases
capital decreases
interest
on capital CAPITAL ↓ ↑
on withdrawings CAPITAL ↑ ↓
PURCHASE GOODS
on CASH CASH↓ STOCK ↑
on CREDIT CRDTR ↑STOCK↑
SALES
on CASH
ON PROFIT
CASH↑ STOCK↓CAP↑
ON LOSS CASH↑ STOCK↓CAP↓
on CREDIT
ON PROFIT
DBTR↑ STCK↓CAP↑
ON LOSS DBTR↑ STCK↓CAP↓
C L A
A L C
A C L
Purchase asset for personal use(drw)
cash
capital
decreases
decreases
TA= C+P+L AE is mathematical expression
TE=OE +CE which shows that A AND L of a
OC=CC+D-AC-P firm are equal.
CC=OC+AC+P-D ☺☺☺☺☺☺☺☺☺
