1. Accounting Equation

2. Resources supplied
by the owner
(Capital)
Resources supplied by
others (Liabilities)
Resources in the business (Assets)

3. Capital +
Liabilities
Assets

4. Assets = Capital + Liabilities

5. Assets Motor Vehicle Cash Bank $ Office Equipment Buildings Stock
Debtor

6. $ $
Bank Overdraft $
Bank Loan
Liabilities
Accruals
Creditor

7. Every transaction
affects
two items.

8. Owners put $10,000
into the business.

9. Assets = Capital + Liabilities

10. Purchase of goods
from A Chan
on credit.

11. Assets = Capital + Liabilities

12. Payment to
A Chan
in cash.

13. Assets = Capital + Liabilities 

14. Owner took goods
from the business
for his own use.

15. Assets = Capital + Liabilities 

16. Sale of goods to
B Wong
on credit.

17. Assets = Capital + Liabilities
Debtors 
Stock

18. Owner paid
A Chan from
his private money.

19. Assets = Capital + Liabilities +

20. Assets = Capital + Liabilities     + + 