accounting equation kese karte h
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Answer:
The accounting equation is used in double-entry accounting. It shows the relationship between your business’s assets, liabilities, and equity. By using the accounting equation, you can see if your assets are financed by debt or business funds. The accounting equation is also called the balance sheet equation.
Balance sheet equation parts
Use your business’s balance sheet to calculate the accounting equation. The balance sheet is a financial statement that tracks your company’s progress. The balance sheet has three parts: assets, liabilities, and equity.
Assets are items of value that your business owns. For example, your business bank account, company vehicles, and equipment are assets.
Liabilities are debts that you owe to others. For example, your payables are liabilities.
Business equity shows your ownership in the business. If you are a sole proprietor, you hold all the ownership. If there is more than one owner, you split the equity. Calculate equity by subtracting your assets from liabilities.
What is the basic accounting equation?
The accounting equation requires liabilities and equity to equal assets. The following is the accounting calculation:
Assets = Liabilities + Equity
Each side of the accounting equation has to equal the other because you must purchase things with either debt or capital.
Equity has an equal effect on both sides of the equation. If you know any two parts of the accounting equation, you can calculate the third.
You can write the accounting equation with the liabilities by itself:
Liabilities = Assets – Equity
Or, you can write the accounting equation with equity by itself:
Equity = Assets – Liabilities
Accounting equation examples
The following examples are connected to the same business. Take a look at how different transactions affect the accounting equation. Then, see the business’s balance sheet at the end of this section.
Example 1:
You’re starting a business selling printed T-shirts. You save for a year before opening and contribute $10,000 to the new company. By doing this, you increase your business’s assets and owner’s equity by the same amount:
$10,000 Assets = Liabilities + $10,000 Equity
Example 2:
Let’s say that after you form your company, you need to buy equipment to print the T-shirts. You purchase $2,000 of the equipment on credit. In this situation, you gain a liability (debt) and an asset. Your assets and liabilities increase by $2,000, so the equation looks like:
$2,000 Assets = $2,000 Liabilities + Equity
Explanation:
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