1. Commenced business with a Capital of PhP50,000 2. Bought Machinery for PhP10,000 cash 3. Purchased goods for PhP15,000 cash 4. Purchased goods from Antonio on credit in the amount of PhP5,000 5. Sold goods for PhP10,000 cash 6. Paid PhP2,000 to Antonio 7. Sold goods to Bonny on credit amounting to PhP3,000 8. Sold goods for PhP 6,000 in cash 9. Paid to Antonio partial payment of PhP 1,000 10. Received from Bony as partial payment in transaction #7 the amount of PhP2,000

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A:

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is