December 15, the client paid Vivian Harris $1,900 after 12days for consulting service provided on December 7. December 16, Vivian Harris made partial payment of $900 to the supplier for supplies taken on December 4. December 20, Vivian Harris withdrew $200 cash for personal use. Analyze the business transaction using the tabular flow (A=L+C) and Find the new balances with foot rule at the end of the period
December 15, the client paid Vivian Harris $1,900 after 12days for consulting service provided on December 7. December 16, Vivian Harris made partial payment of $900 to the supplier for supplies taken on December 4. December 20, Vivian Harris withdrew $200 cash for personal use. Analyze the business transaction using the tabular flow (A=L+C) and Find the new balances with foot rule at the end of the period
The accounting equation is the fundamental equation of the double-entry bookkeeping system.
Mathematically, it is denoted as
Assets = Liabilities + Capital
All transactions of the accounting system can be encompassed in this equation
Clarification: Ending Balances will have to be taken by consideration of the opening balances and the transactions before and after
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