Define the accounting equation You purchased a $50,000 with $20,000 of your own

Question

Define the accounting equation You purchased a $50,000 with $20,000 of your own money and financed the remaining $30,000. How would you show this transaction using the accounting equation? Discuss your expectation(s) upon completion of this accounting class, and how much time you believe you should invest each week in the your studies.

Accounting equation B/s THE ACCOUNTING EQUATION Double-entry system of BALANCE recording transactions Debit asset up ASSET LIABILITY EQUITY Credit asset down Debit liability down Credit liability up Debit equity down Credit equity up Credit revenue up Debit expense up T-ACCOUNT RvEx

Explanation / Answer

Accounting Equation- It is an equation of accounting which shows that the assets of the business are always equal to the total of equity and liabilities. It emphasizes on the fact that every business transaction has a two sided effect.
Purposes of Accounting Equation-
Since accounting equation is always balanced, it ensures the accuracy in recording of business transaction.
It helps in the preparation of the balance sheet.
Accounting Equation: - Assets = Equity + Liabilities.

Question does not specify what was purchased. Hence, I have assumed that equipment was purchased for $50,000. If some other asset was purchased, then equipment must be replaced by that asset.

In my opinion, 2-3 hours of dedicated study per day is sufficient. Weekly 18-20 hours of study can produce good results.

Kindly give a positive rating if you are satisfied with the answer. Feel free to ask if you have any doubt. Thanks.

Transaction no. Assets = Liabilities + Equity Cash + Equipment = Loan    (i) - 20,000 + 50,000 = 30,000

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