Professional Documents
Culture Documents
August 2020
BM Term 1
Friday
(4 - 5pm)
debarati@xlri.ac.in
The Accounting Equation
Economic Resources = Claims
Basu, XLRI
Test!
• Assets = 60,000; Liabilities = 48,000; Equity = ? Equity = Assets – Liabilities = 12,000
Basu, XLRI
Analysing Business Transactions
• Owner invests 50,000 on 15th May 2019
• Services worth 15,000 provided for cash on 30th May 2019; agreed on further services of 12,000
Basu, XLRI
Date Assets Liabilities Equity
Supplies +18,000
25th May No effect No effect
Cash -18,000
• Balance Sheet
Basu, XLRI
Basu, XLRI
Basu, XLRI
Basu, XLRI
Basu, XLRI
Test!
• ABC Ltd details:
Assets Liabilities
Beginning of the Year 3,60,000 1,37,500
End of the Year 5,80,000 3,03,000
• 2.4
• 2.8
• 2.11
• 2.12
• BDC 2.2
Basu, XLRI
Questions
Test
• Owner invested 1,00,000 as capital
Basu, XLRI
The rest…
in a while,