Question

1. What is accounting equation? [2]
2. Give the fundamental equation. [1]
3. What is debit and credit? [3]​

Answer 1

1. The fundamental accounting equation, also called the balance sheet equation, represents the relationship between the assets, and liabilities of a person or business. It is the foundation for the double-entry bookkeeping system. For each transaction, the total debits equal the total credits.
2. The fundamental accounting equation, also called the balance sheet equation, represents the relationship between the assets, and liabilities of a person or business. It is the foundation for the double-entry bookkeeping system. For each transaction, the total debits equal the total credits.
3. Debits and credits are used in a company's bookkeeping in order for its books to balance. Debits increase asset or expense accounts and decrease liability, revenue or equity accounts. ... When recording a transaction, every debit entry must have a corresponding credit entry for the same dollar amount, or vice-versa.

OK dear...