Example No.1
Let’s assume that ABC introduces / invest money in business i.e (Capital/Owner Equity) for $ 100 on December 31, 2019, ABC’s accounting equation is;
Example No.2
Purchased plant on credit for $500.
Example No.3
Purchased machine on credit $2,500.
Example No.4
Creditor paid off by cheque for $4,000.
Example No.5
Drawings by arranging bank overdraft for
$4,700.
Example No.6
Drawings of cash $ 15,000.
Example No.7
Creditors paid-off by arranging loan $
10,000.
Example No.8
Further capital introduced to pay-off
creditors $7,500.
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