Exercise 1-8 Using the accounting equation A1 Determine the missing amount from each of the separate situations a, b, and c below. Liabilities Assets Equity $ 20,000 34,000 $ 45,000 (a) $ 2 100,000 154,000 3. (b) (c) 40,000

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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