THE ACCOUNTING EQUATION

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accounting equation;
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Accounts Receivable
Cash

Inventory Property, Plant and

Equipment (PPE)
Accounts Payable Bank Loans Salaries and
Wages Payable
Stock Sales
The Accounting Equation
 Starting up a business
You have a killer idea for an application: it will use a cutting
edge artificial intelligence technology to automatically call
and order coffee from the nearest café. You both agree to
invest ₱ 100,000.00 in cash, for a total initial investment of
₱ 200,000.00.

How does this transaction affect

the accounting equation of your
business?
 Starting up a business
After discussing with your partner, you both agree that
you needed computers to continue the operations of
your business so you spend ₱ 80,000 on laptops.

How does this transaction affect

the accounting equation of your
business?
 Starting up a business

A few days after you purchase a standing

desk for ₱ 50,000.00 on credit.

How does this transaction affect

the accounting equation of your
business?