If you are struggling with financial accounting assignment equation and need professional assistance to complete task, then do not hesitate to call BookMyEssay. The firm offers best in class assignment for a range of subjects and topics. So, assignment writing help for financial accounting subject is not a big deal for them.

The accounting equation builds the basics for all accounting system. The double entry accounting system is entirely based on basic accounting equation. And a simple accounting equation reveals two simple facts about a company: what the company owns and what it owes. In this page, we will talk about the accounting equation only.

So, at first understand the fundamental elements of an accounting equation. The company’s financial position is measured in the mention terms:

Assets – It mean what is own by the company and this include cash, inventory, accounts receivable, investments and prepaid insurance

Liabilities – I means what companies owes to others and this includes loans payable, salaries, account payable, interest payable

Capital – This is the difference between the assets and liabilities.

The general accounting equation describes the relationship among the mention elements in the following manner,

## How to Solve a Basic Accounting Equation?

The example of solving the equation using the above mentioned formula.

Problem: Check out how accounting equation is satisfied after considering each of the transactions in Mr. a books

Solution of the problem

Capital (100,000) + Liabilities (0) = Assets (cash = 100,000)

Bought furniture \$25, 000

Solution

Capital (100,000) + Liabilities (0) = Assets (Cash = 75,000 + Furniture = 25,000)

Bought goods for cash \$20, 000

Solution

Capital (100, 000) + Liabilities (0) = Assets (Cash = 55,000 + Furniture = 25,000 + Goods = 20,000)

Brought goods from Mr. Nelson on credit \$5,000

Solution

Capital (100, 000) + Liabilities (Nelson = 5,000) = Assets (Cash = 55,000 + Furniture = 25,000 + Goods = 25,000)

Sold goods for cash for \$15, 000

Capital (100,000) + Liabilities (Nelson = 5,000) = Assets (Cash = 70,000 + Furniture = 25,000 + Goods = 10,000)

Sold goods to Mr. William on credit \$8,000

Solution,

Capital (100,000) + Liabilities (Nelson = 5,000) = Assets (Cash = 70,000 + Furniture = 25,000 + Goods = 2,000 + William = 8,000)

Paid cash to Nelson \$4,000

Solution,

Capital (100,000) + Liabilities (Nelson = 1,000) = Assets (Cash = 66,000 + Furniture = 25,000 + Goods = 2,000 + William = 8,000)

Solution

Capital (100,000) + Liabilities (Nelson = 1,000) = Assets (Cash = 71,000 + Furniture = 25,000 + Goods = 2,000 + William = 3,000)

This is just an example; students are given more challenging problem when it come financial accounting assignment equations.

## Some of Other Accounting Problems Include

• Make an accounting equation for a corporate
• Accounting equation a sole proprietorship company
• Calculating the missing amount within equity of owner.
• Expanded accounting equation for a sole proprietorship firm

### How BookMyEssay Is Helping Students

BookMyEssay help students in assignment work, by offering them the required assistance. Firm has finance subject experts, who have command on the topics, calculation and other types of content. When students approach the firm for the finance assignment writing help, the experts are given the responsibility to write assignment for them.

Tags: , , , ,
Recent Posts
Winning Tips for Beginners about Programming
What is Python Programming Language?
Complete Overview about Engineering Challenges along its Benefits
To Build a Successful Business You Need to Have these Mathematics Skills
Guidelines to Get Positive Impacts through Effective Statistical Practice
Essential Numbers of Business Statistics Should Know in 2019