Thewholeoffinancialaccountingisbasedupontheverysimpleideathat,resourcessuppliedby theownerofthebusinessplusliabilitiesthatmustbesettledatafuturedatemustbeequaltothe resourcesinthebusiness.Itfollowsthatthecapitalplusliabilitiesoftheentitymustbeequalto assetsoftheentityexpressedas:Capital+Liabilities=Assets(i.e.C+L=A). UsingMicrosoftexcel,demonstratetheeffectsofthefollowingtransactionsontheaccounting equation,andpreparetheresultantbalancesheetasat31stJuly,2020, ¢ 1Julystartedbusinesswithcash 30,000 2Salesoncash 50,000 4Stockofmaterialspaidbycash 10,000 5Paidcashintobank 20,000 7Withdrewcashforofficeuse 10,000 8Loanreceivedbycash 20,000 10Salesofgoodsreceivedcheque 30,000 19Cashsales 80,000 21Debtorpaidusbycash 50,000 30Sales,receivedcheque 40,000
Question1
Thewholeoffinancialaccountingisbasedupontheverysimpleideathat,resourcessuppliedby
theownerofthebusinessplusliabilitiesthatmustbesettledatafuturedatemustbeequaltothe
resourcesinthebusiness.Itfollowsthatthecapitalplusliabilitiesoftheentitymustbeequalto
assetsoftheentityexpressedas:Capital+Liabilities=Assets(i.e.C+L=A).
UsingMicrosoftexcel,demonstratetheeffectsofthefollowingtransactionsontheaccounting
equation,andpreparetheresultantbalancesheetasat31stJuly,2020,
¢
1Julystartedbusinesswithcash
30,000
2Salesoncash
50,000
4Stockofmaterialspaidbycash
10,000
5Paidcashintobank
20,000
7Withdrewcashforofficeuse
10,000
8Loanreceivedbycash
20,000
10Salesofgoodsreceivedcheque
30,000
19Cashsales
80,000
21Debtorpaidusbycash
50,000
30Sales,receivedcheque
40,000
Step by step
Solved in 2 steps with 2 images
