Accounting Assignment Help >> Fundamental Accounting Equation

Live Accounting Experts: Instant Accounting Assignment Help, Accounting Homework Assistance

We at Expertsmind.com offer accounting assignment help, accounting homework assistance and accounting projects help from qualified accounting expert’s assistance with best online support for 24*7 hours. Accounting problems under fundamental accounting equation are quite interesting to solve, sometimes …topics problems hard to solve for students without guidance and expert’s assistance. Accounting experts at Expertsmind.com are well qualified and experienced and they can solve accounting assignments and homework without any difficulties. We offer accounting writing help for fundamental accounting equation topics with guaranteed 100% plagiarism free answers. We provide step by step answers for fundamental accounting equation problems.

Fundamental Accounting Equation

Assets = Equities

This is the fundamental accounting equation which is a formal expression of dual aspect concept as we see all accounting procedures are derived from this equation. This reflects two kinds of equities. The equation expression will become;

Assets = liabilities + owners equity

Every transaction has a dual effect on accounting records. Accounting systems are setup to record both the aspects of a single transaction. This is called double entry system.

Example

To illustrate a dual aspect concept; suppose Mr. A starts a business with a capital of rupees 30 thousands. There are two aspects; one is cash that is an asset comes to the business and the second business has to pay to the proprietors a sum of thirty thousand which is taken as proprietor’s capital

Cash = capital

30,000 = 30,000

The term accounting equation also express relationship of equities to the assets. It can be technically stated as for every debit (DR), there is an equivalent credit (CR)