T-Account (Liability) CRNEED UNKOWN CR amountPlease provide in detail the equation for finding out this UNKNOWN CR amount on a CR Liablity Account. Also could you tell me how I would find an unkown DR amount on the same type of Liabilty CR Account. ThanksBeginning Balance $3,000CR-$3,400CR-UNKOWNDR- $1,500DR-$2,000Ending Balance=$6,700

Question
Asked Jan 25, 2019
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T-Account (Liability) CR
NEED UNKOWN CR amount
Please provide in detail the equation for finding out this UNKNOWN CR amount on a CR Liablity Account. Also could you tell me how I would find an unkown DR amount on the same type of Liabilty CR Account. Thanks

Beginning Balance $3,000

CR-$3,400

CR-UNKOWN

DR- $1,500

DR-$2,000

Ending Balance=$6,700

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Expert Answer

Step 1

The equation to be used for ending balance of Liability Account from where we can find out any missing amount if all the other amounts are given as under:

Ending balance of Liability Account = Begining Balance of Liability + All credits amount - All debits amount

Ending balance = 6700

All debits amount = 1500+2000=3500

Begining Balance = 3000

All credit amounts =(3400+x)  (Here the missing credit amount be taken as x)

Therefore as per equation:

6700 = 3000+ (3400+x)-3500

Therefore, x= $ 3800

Hence, Missing credit transaction be equal to $ 3800.

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Step 2

In the same way, the missing debit transaction can be computed when all other information like begining and ending balance of liability account, All credit transac...

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