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What is the basic accounting equation?

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Question ajoutée par Muhammad Asif Jajja , Accountant , Pakistan Veterinary Medical Council
Date de publication: 2013/06/21
Farhad Ali
par Farhad Ali , Accountant , AL Aaly holding

Asset = capital + profit +liability _ drawing

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

The basic accounting equation is "Assets = liabilities + owners' equity." Assets are what the company owns.
liabilities are what the company owes to other parties.
Owners' equity is the owners' share in the company.

Wilfredo Quito
par Wilfredo Quito , Accounting Manager , DDC LAND INC.

 

The expanded accounting equation is Assets = Liabilities + (Owner's Capital + Revenues - Expenses - Owner's Draws) for a sole proprietorship or Assets = Liabilities + (Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock) for a corporation. The equation expands the owner's or stockholders' equity component of the basic accounting formula, which is Assets = Liabilities + Owner's or Stockholders' Equity.

 

Mohammad Feroz Al Azad
par Mohammad Feroz Al Azad , Head of ORM, And Head of ICC (Internal Control & Compliance , Brac Bank Limited

Double entry system of accounting is universally accepted.
Loca paciali innovated this system in the written form double entry system double aspects of each transaction are mentioned.
Two accounts are influenced for each transaction one is debit and the other is credit Modern writers of Accounting have innovated an arithmetical equation known as accounting equation on the basis of this dual aspect of transactions.
This equation is universally accepted.
The basis of this equation is that the total assets of an organization are equal to the total equity i.e.
asset equity.
This is a fundamental accounting equation.
Here, A = E A = Total Assets E = Total equity.
There fore, the main accounting Equation can be expressed in the Following extend Form Here, A = L + OE L = Claim or right o creditors OE = Owner’s equity.

Mohammed Yousif Alimam
par Mohammed Yousif Alimam , financial & office manager , Cits engineering

Assets = Liabilities + Owner’s Equity

Utilisateur supprimé
par Utilisateur supprimé

look at your Balance Sheet !

Bandar AlHadad
par Bandar AlHadad , مختص شؤون مالية , قطاع حكومي

called the balance sheet equation, represents the relationship between the assets, liabilities, and owner's equity of a business.
It is the foundation for the double-entry bookkeeping system.
For each transaction, the total debits equal the total credits.
It can be expressed as Assets = Liabilities + Capital a = l + c

مالك حيارات
par مالك حيارات , كاتب مالي , أمانة عمان الكبرى

Assets = Liabilities +capital

Muhammad Iqbal
par Muhammad Iqbal , Finance Manager , MachinesTalk Company for Contracting

Assets= outsider Equity+owner Equity

SALIK RAFIQUE
par SALIK RAFIQUE , Lecturer , PAC Group of Colleges

Assets = Liabilities = Capital+ Profit/Loss- Drawing

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