Asked Jan 25, 2019

how do I determine were to enter the amount of each transaction on individual items of the accounting equation.


Expert Answer

The amount of each transaction on individual items of the accounting equation are enter by following steps:

(1) Ascertain the variables (i.e. assets, liabilities or capital) of an equation affected by a transaction.

For example: Mr. A commenced business with $50,000

(2) Find out the effects (in terms of increase or decrease) of a transactions on the variables of an equation.

Introducing $...

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