Alex is the owner of Omega Services which offers cleaning services. On 31 December 2016 Omega Services owns equipment amounting to R 120,000. Clients owe R 30,000 for services rendered and Omega Services owes R 25,000 to a supplier for cleaning supplies purchased. Omega services also has R 11 300 in cash at the bank

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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