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Using Microsoft excel, demonstrate the effects of the following transactions on the accounting equation, and prepare the resultant balance sheet as at 31" July, 2020,

Using Microsoft excel, demonstrate the effects of the following transactions on the accounting equation, and prepare the resultant balance sheet as at 31" July, 2020,

FINANCIAL ACCOUNTING
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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Question 1 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 31" 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
Transcribed Image Text:Question 1 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 31" 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
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