Accounting Equation Math Problem - 275 Words

Math Problem: Accounting Equation (Math Problem Sample) Content: Order 704188Required:Task 1: Show the effect of the above transactions on the accounting equation (10 marks)Usually, any transaction involving a business has a significant influence on the accounting equation. Any incentives to influence changes in the transaction variables, results to satisfying the equation irrespective of the alterationAccounting EquationAssets = Capital + LiabilitiesNote:DR à ¢Ã¢â€š ¬ DebitCR à ¢Ã¢â€š ¬ CreditBal b/f à ¢Ã¢â€š ¬ balance brought forward or opening balanceBal c/f à ¢Ã¢â€š ¬ balance carried forward or closing balance * July 1st Dimos invested $ 16,000 cash in the businessDR Capital Ledger a/c CR Date Particulars Folio Amount Date Particulars Folio Amount     01-06-14 cash  16000 30-07-14 Bal c/f 16000        16000    16000     01-08-14 Bal b/f  16000 Before Laura Dimos started the Consulting Firm the equat ion wasCapital + Liabilities = Assets i.e. [0 + 0 = 0]But after starting the firm she invested $16000 on July 1stm, the firmà ¢Ã¢â€š ¬s value increased from Zero to $16000. This was the startup capital, hence[$16000 + 0 = $16000] à ¢Ã¢â€š ¬ The equation was fulfilled * July 2nd Paid $ 1600 for office rent for the monthDR Rent Ledger a/c CR Date Particulars Folio Amount Date Particulars Folio Amount 02-07-14 cash  1600          bal c/f  1600    1600    1600 01-08-14 bal b/f  1600     Rent is an expense to the firm. The rent value is transferred to the income statement as an operating expense. This transaction had no influence on either capital or liability but since it was paid on cash it reduced the amount of capital from $16000 to $14400.Hence; Capital + Liabilities = Assets. The equation was fulfilled[($16000+0)-$1600] = [Cash $14400] * July 3rd Purchase d $1000 supplies on creditDR Purchase Ledger a/c CR Date Particulars Folio Amount Date Particulars Folio Amount 03-07-14 creditors  1000         30-07-14 bal c/f  1000    1000    1000 01-08-14 bal b/f  1000     In this transaction, the supplies made on credit increased the firmà ¢Ã¢â€š ¬s liability from zero to $1000 as well as the firmà ¢Ã¢â€š ¬s asset by $1000. Such transaction had no effect on the capital or the cash.Hence; Capital + Liabilities = Assets[($16000+0)-$1600]+ $1000 = [Cash $14400] + $1000The equation was fulfilled * July 9th Received $ 6000 cash for services providedDR Sales Ledger a/c CR Date Particulars Folio Amount Date Particulars Folio Amount     09-07-14 cash  6000     15-07-14 cash  6600 30-07-14 bal c/f  12600        12600   à ‚ 12600     01-08-14 bal b/f  12600 From these sale (receipt) transactions, the firmà ¢Ã¢â€š ¬s available cash increased from Cash (14400) by ($6000) to $20400. The transaction had no influence on capital and supply.Hence; Capital + Liabilities = Assets[($16000+0)-$1600]+ [Services $6000] = [Cash 20400+ $1000]The equation was fulfilled * July 15th Performed $ 6600 of services on accountJuly 23rd received cash payment of $ 4000 for services provided on accountThe recipient of this service transaction is a debtor. The debtor may be valued as an asset. Such asset has no influence on the capital or liability or cash available. In such case the equation was fulfilledDebtors Ledger accDR CR Date Particulars Folio Amount Date Particulars Folio Amount 15-07-14 sales  6600 23-07-14 cash  4000     30-07-14 bal c/f  2600    6600    6600 01-08-14 bal b/f  2600     * July 17th Paid $ 6000 for employee salariesSalaries Ledger a/cDR Salaries Ledger a/c CR Date Particulars Folio Amount Date Particulars Folio Amount 17-07-14 cash  6000         30-07-14 bal c/f  6000    6000    6000 01-08-14 bal b/f  6000     The salaries reduced the capital invested in the firm. However, this transaction conformed to the equation.The equation was fulfilled * July 20th Paid for the supplies purchased on accountThis transaction reduced the available cash. The transaction had an influence on the liabilities and not the capitalJuly 29th purchased office equipment for $ 4800 on accountThis transaction increased the liabilities as well as the asset and not the capital.Creditors LedgerDR a/c CR Date Particulars Folio Amount Date Particulars Folio Amount 20-07-14 cash  1000 03-07-14 purchases  1000     29-07-14 equipment Ã⠀š 4800 30-07-14 bal c/f  4800        5800    5800     01-08-14 bal b/f  4800 * July 26th Borrowed $ 10000 from the bank as a loanThis increases the cash and the non-current liabilities.The equation was fulfilledLoan LedgerDR a/c CR Date Particulars Folio Amount Date Particulars Folio Amount     20-07-14 cash  10000 30-07-14 bal c/f  10000 Accounting Equation Math Problem - 275 Words Math Problem: Accounting Equation (Math Problem Sample) Content: Order 704188Required:Task 1: Show the effect of the above transactions on the accounting equation (10 marks)Usually, any transaction involving a business has a significant influence on the accounting equation. Any incentives to influence changes in the transaction variables, results to satisfying the equation irrespective of the alterationAccounting EquationAssets = Capital + LiabilitiesNote:DR à ¢Ã¢â€š ¬ DebitCR à ¢Ã¢â€š ¬ CreditBal b/f à ¢Ã¢â€š ¬ balance brought forward or opening balanceBal c/f à ¢Ã¢â€š ¬ balance carried forward or closing balance * July 1st Dimos invested $ 16,000 cash in the businessDR Capital Ledger a/c CR Date Particulars Folio Amount Date Particulars Folio Amount     01-06-14 cash  16000 30-07-14 Bal c/f 16000        16000    16000     01-08-14 Bal b/f  16000 Before Laura Dimos started the Consulting Firm the equat ion wasCapital + Liabilities = Assets i.e. [0 + 0 = 0]But after starting the firm she invested $16000 on July 1stm, the firmà ¢Ã¢â€š ¬s value increased from Zero to $16000. This was the startup capital, hence[$16000 + 0 = $16000] à ¢Ã¢â€š ¬ The equation was fulfilled * July 2nd Paid $ 1600 for office rent for the monthDR Rent Ledger a/c CR Date Particulars Folio Amount Date Particulars Folio Amount 02-07-14 cash  1600          bal c/f  1600    1600    1600 01-08-14 bal b/f  1600     Rent is an expense to the firm. The rent value is transferred to the income statement as an operating expense. This transaction had no influence on either capital or liability but since it was paid on cash it reduced the amount of capital from $16000 to $14400.Hence; Capital + Liabilities = Assets. The equation was fulfilled[($16000+0)-$1600] = [Cash $14400] * July 3rd Purchase d $1000 supplies on creditDR Purchase Ledger a/c CR Date Particulars Folio Amount Date Particulars Folio Amount 03-07-14 creditors  1000         30-07-14 bal c/f  1000    1000    1000 01-08-14 bal b/f  1000     In this transaction, the supplies made on credit increased the firmà ¢Ã¢â€š ¬s liability from zero to $1000 as well as the firmà ¢Ã¢â€š ¬s asset by $1000. Such transaction had no effect on the capital or the cash.Hence; Capital + Liabilities = Assets[($16000+0)-$1600]+ $1000 = [Cash $14400] + $1000The equation was fulfilled * July 9th Received $ 6000 cash for services providedDR Sales Ledger a/c CR Date Particulars Folio Amount Date Particulars Folio Amount     09-07-14 cash  6000     15-07-14 cash  6600 30-07-14 bal c/f  12600        12600   à ‚ 12600     01-08-14 bal b/f  12600 From these sale (receipt) transactions, the firmà ¢Ã¢â€š ¬s available cash increased from Cash (14400) by ($6000) to $20400. The transaction had no influence on capital and supply.Hence; Capital + Liabilities = Assets[($16000+0)-$1600]+ [Services $6000] = [Cash 20400+ $1000]The equation was fulfilled * July 15th Performed $ 6600 of services on accountJuly 23rd received cash payment of $ 4000 for services provided on accountThe recipient of this service transaction is a debtor. The debtor may be valued as an asset. Such asset has no influence on the capital or liability or cash available. In such case the equation was fulfilledDebtors Ledger accDR CR Date Particulars Folio Amount Date Particulars Folio Amount 15-07-14 sales  6600 23-07-14 cash  4000     30-07-14 bal c/f  2600    6600    6600 01-08-14 bal b/f  2600     * July 17th Paid $ 6000 for employee salariesSalaries Ledger a/cDR Salaries Ledger a/c CR Date Particulars Folio Amount Date Particulars Folio Amount 17-07-14 cash  6000         30-07-14 bal c/f  6000    6000    6000 01-08-14 bal b/f  6000     The salaries reduced the capital invested in the firm. However, this transaction conformed to the equation.The equation was fulfilled * July 20th Paid for the supplies purchased on accountThis transaction reduced the available cash. The transaction had an influence on the liabilities and not the capitalJuly 29th purchased office equipment for $ 4800 on accountThis transaction increased the liabilities as well as the asset and not the capital.Creditors LedgerDR a/c CR Date Particulars Folio Amount Date Particulars Folio Amount 20-07-14 cash  1000 03-07-14 purchases  1000     29-07-14 equipment Ã⠀š 4800 30-07-14 bal c/f  4800        5800    5800     01-08-14 bal b/f  4800 * July 26th Borrowed $ 10000 from the bank as a loanThis increases the cash and the non-current liabilities.The equation was fulfilledLoan LedgerDR a/c CR Date Particulars Folio Amount Date Particulars Folio Amount     20-07-14 cash  10000 30-07-14 bal c/f  10000