A business owes 35000 and stockholders investors have invested 115000 by buying stock in the company. Show that the accounting equation is satisfied after taking into consideration each of the following transactions in the books of mr. Use a watch or clock to time yourself for this exercise.
basic accounting equation questions
Sold goods for cash for 15000.
Basic accounting equation questions. The basic accounting equation is assets liabilities owners equity. Bought furniture 25000. For deep understanding of accounting equation following are important accounting equation questions. Test your knowledge of double entry bookkeeping and accounting with our online basic accounting equation quiz.
For purposes of exams and testing its important to make sure you not only answer the questions correctly but are completing them accounting equation questions and answers. If the business in question is a corporation equity will be held by stockholders which uses stockholders equity but the basic equation is the same. In this example the sum of liabilities of 245000 and owners equity of 331000 is 576000. Liabilities equity and revenues are on the right side of the equation.
The equation 2 shows that assets and expenses are on the left side of the equation. Sold goods to shyam on credit 8000. Following transactions are record in accounting equation. These are the building blocks of the basic accounting equation.
By kevin north carolina usa before you begin. The equality of both parts of the equation is always maintained. Assets liabilities equity. Basic accounting equation question before you begin.
The basic accounting equation is fundamental to an understanding of double entry bookkeeping transactions. Accounting test question with answers on accounting equation and debit and credit page 4. Bought goods from ram on credit 5000. You can always double check your answer by going back to the original equation assets liabilities owners equity.
Commence business with cash rs. The assets owned by the. For purposes of exams and testing its important to make sure you not only get the questions right but are completing them at the right speed. Accounting equation questions and answers.
Started business with capital 100000. Habib ullah sadiq is wholesale trader. 200000 and land rs. Bought goods for cash 20000.
