The whole of financial accounting is based upon the very simple idea that, resources supplied by the owner of the business plus liabilities that must be settled at a future date must be equal to the resources in the business. It follows that the capital plus liabilities of the entity must be equal to assets of the entity expressed as: Capital + Liabilities = Assets (i.e. C+L=A). Using Microsoft excel, demonstrate the effects of the following transactions on the accounting equation, and prepare the resultant balance sheet as at 31st July, 2020,
The whole of financial accounting is based upon the very simple idea that, resources supplied by the owner of the business plus liabilities that must be settled at a future date must be equal to the resources in the business. It follows that the capital plus liabilities of the entity must be equal to assets of the entity expressed as: Capital + Liabilities = Assets (i.e. C+L=A). Using Microsoft excel, demonstrate the effects of the following transactions on the accounting equation, and prepare the resultant balance sheet as at 31st July, 2020,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The whole of financial accounting is based upon the very simple idea that, resources supplied by the owner of the business plus liabilities that must be settled at a future date must be equal to the resources in the business. It follows that the capital plus liabilities of the entity must be equal to assets of the entity expressed as: Capital + Liabilities = Assets (i.e. C+L=A).
Using Microsoft excel, demonstrate the effects of the following transactions on the
Transcribed Image Text:1 July started business with cash
30,000
2 Sales on cash
50,000
4 Stock of materials paid by cash
10,000
5 Paid cash into bank
20,000
7 Withdrew cash for office use
10,000
8 Loan received by cash
20,000
10 Sales of goods received cheque
30,000
19 Cash sales
80,000
21 Debtor paid us by cash
50,000
30 Sales, received cheque
40,000
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