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,¢1 July started business with cash 30,0002 Sales on cash 50,0004 Stock of materials paid by cash 10,0005 Paid cash into bank 20,0007 Withdrew cash for office use 10,0008 Loan received by cash 20,00010 Sales of goods received cheque 30,00019 Cash sales 80,00021 Debtor paid us by cash 50,00030 Sales, received cheque 40,000 The whole of financial accounting is based upon the very simple idea that, resources supplied bythe owner of the business plus liabilities that must be settled at a future date must be equal to theresources in the business. It follows that the capital plus liabilities of the entity must be equal toassets 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 accountingequation, and prepare the resultant balance sheet as at 31s' July, 2020,1 July started business with cash000'0E2 Sales on cash000'0s4 Stock of materials paid by cash000°0I5 Paid cash into bank000'07 Withdrew cash for office use000ʻ018 Loan received by cash000'0710 Sales of goods received cheque30,00019 Cash sales000ʻ0821 Debtor paid us by cash000ʻ0S30 Sales, received cheque000ʻ0

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Description: 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 capi

EFFECT OF TRANSACTION ON ACCOUNTING EQUATION DATE PARTICULAR DESCRIPTION CAPITAL + LIABILITIES=…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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 accounting
equation, and prepare the resultant balance sheet as at 31st July, 2020,
¢
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

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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