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Accounting Equation

Senior High School

Created on February 17, 2024

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Transcript

3RD Quarter
Grade 11 - FABM 1

ACCOUNTING EQUATION

"Balancing the Books and Unleashing Financial Harmony: Decoding the Symphony of the Accounting Equation"

ACCOUNTING EQUATION

ASSETS

LIABILITIES

OWNER'S EQUITY

Owner's Rights to the Assets of the Business

What the business OWNED

What the business OWED

ACCOUNTING EQUATION

ASSETS

OWNER'S EQUITY

LIABILITIES

LIABILITIES

ASSETS

OWNER'S EQUITY

LIABILITIES

OWNER'S EQUITY

ASSETS

ASSETS

OWNER'S EQUITY

LIABILITIES

Assets: ______

80,000

Liabilities: 25,000

ANSWER

Owner's Equity: 55,000

ASSETS

OWNER'S EQUITY

LIABILITIES

Owner's Capital: 143,000

Notes Payable: 3,000

Accounts Payable: 5,000

206,000

________

Loans Payable: 55,000

ASSETS

OWNER'S EQUITY

ASSETS

LIABILITIES

Assets: 500,000

Liabilities: _____

260,000

ANSWER

Owner's Equity: 240,000

OWNER'S EQUITY

LIABILITIES

ASSETS

Owner's Capital: 150,000

Cash: 315,000

Supplies: 15,000

300,000

________

Building: 120,000

LIABILITIES

ASSETS

LIABILITIES

OWNER'S EQUITY

Assets: 700,000

Liabilities: 240,000

ANSWER

Owner's Equity: ________

460,000

ASSETS

LIABILITIES

OWNER'S EQUITY

Mortgage Payable: 112,000

Cash: 315,000

Supplies: 15,000

166,000

________

Accounts Payable: 52,000

LIABILITIES

group activity

Instructions:

Using the data below, determine the total assets, total liabilities and owner's equity.

Illustrate the data using accounting equation

ACCOUNTS:

Equipment: 55,000

Accounts Payable: 40,000

Notes Payable: 15,000

Cash: 320,000

JAA's Capital: 320,000

group activity

Instructions:

Using the data below, determine the total assets, total liabilities and owner's equity.

Illustrate the data using accounting equation

ACCOUNTS:

Loans Payable: 150,000

Accounts Receivable: 40,000

Notes Payable: 120,000

Cash: 420,000

Vinas's Capital: 190,000

group activity

Instructions:

At the beginning of the year, J. Agnas Enterprises had Total assets of P 850,000 and Total Liabilities of P 300,000. Answer the following question.

Illustrate the data using accounting equation

If total assets increased by P 130,000 during the year and total liabilities decreased by P 60,000, what will be the total assets, total liabilities and owner’s equity at the end of the year?

group activity

Instructions:

At the beginning of the year, J. Agnas Enterprises had Total assets of P 700,000 and Total Liabilities of P 500,000. Answer the following question.

Illustrate the data using accounting equation

If total assets increased by P 130,000 during the year and total liabilities decreased by P 60,000, what will be the total assets, total liabilities and owner’s equity at the end of the year?

note:

Apply the Accounting Equation:

ASSETS = LIABILITIES + OWNER'S EQUITY

5 MINUTES

TIME:

05:00