Ch3.3 Accounting Equation 3E

Asset = Liability + ______

State the accounting equation

• Asset = Liability - Equity

• Asset +Liability = Equity

• Asset = Liability X Equity

• Asset = Liability + Equity

If assets is $500 and liabilities is $300, how much is equity?

If equity is $400 and liabilities is $300, how much is asset?

On 1 January 2021, the balances of ABC Trading are as follow:

 

Inventory        $500

Cash at bank  $200

Bank loan       $100

 

Calculate the capital on 1 January 2021.

 

Capital is $___________

On 1 February 2021, the balances of ABC Trading are as follow:

 

Inventory      $600

Cash at bank   ?

Furniture $250

Capital    $1000

 

Calculate the cash at bank on 1 February 2021.

 

Cash at bank is $___________

On 1 March 2021, the balances of ABC Trading are as follow:

 

Equipment        $900

Cash at bank   ?

Inventory $250

Capital    $1000

Trade payable $200

 

Calculate the cash at bank on 1 March 2021.

 

Cash at bank is $___________

On 1 April 2021, the balances of ABC Trading are as follow:

 

Inventory        $900

Cash at bank   $500

Salaries expense $250

Capital    $1000

Trade payable $200

Trade receivable $700

Sales revenue $1600

Cost of sales $180

Drawings ?

 

Calculate the drawings on 1 April 2021.

 

drawings is $___________

Cash at bank is $___

Drawings is $___