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What is the effect of business transactions on the basic accounting equation?

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تم إضافة السؤال من قبل Mohamed El Machichi , Purchase Manager , Berkat Madinah Trading Sdn.Bhd
تاريخ النشر: 2013/06/24
Saad Bin Asghar
من قبل Saad Bin Asghar , Accounts and Finance Manager , Eastern Biotech and Life Sciences

The Accounting Equation (Assets = Liabilities + Capital) always remains equal after each and every business transaction.

Kokab Rahman
من قبل Kokab Rahman , Managing Director, Head of Business Development , Radeya Business Services http://www.radeya.biz

The basic accounting equation remains the same.
This is because every transaction affects the accounts in a way that one account is increased while another account is decreased, either with a debit or credit to the accounts.
The basic accounting equation is "Assets = liabilities + owners' equity."

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