accounting equation 01 (for 11th a/c)
DESCRIPTION
gift for 11th students.and for CA,CS,CWATRANSCRIPT
DAKSH ACADEMY JAY MATA DI MOB- 9717841557
AMIT KUMAR < CS (P), M.COM. > Page 1
Accounting Equation
starting business
cash increase
capital increasewithdrawings
cash cash↓ capital↓
goods stock↓ capital↓
expanses
prepaid cash↓ ppexp(A)↑
paid on time cash↓ capital↓
outstanding o/s liab.↑ capital↓
incomes
recd. in dvance cash↑ recd .adv(L)↑
cash recd. on time cash↑ capital↑
accrued acc.inc(A)↑ capital↑
liabilityloan recd. cash ↑ liab. ↑
loan paid cash↓ liab.↓depreciation
asset decreases
capital decreases
interest
on capital CAPITAL ↓ ↑
on withdrawings CAPITAL ↑ ↓
PURCHASE GOODS
on CASH CASH↓ STOCK ↑
on CREDIT CRDTR ↑STOCK↑
SALES
on CASH
ON PROFIT
CASH↑ STOCK↓CAP↑
ON LOSS CASH↑ STOCK↓CAP↓
on CREDIT
ON PROFIT
DBTR↑ STCK↓CAP↑
ON LOSS DBTR↑ STCK↓CAP↓
C L A
A L C
A C L
Purchase asset for personal use(drw)
cash
capital
decreases
decreases
TA= C+P+L AE is mathematical expression
TE=OE +CE which shows that A AND L of a
OC=CC+D-AC-P firm are equal.
CC=OC+AC+P-D ☺☺☺☺☺☺☺☺☺