How to do basic accounting equation?

Question

447 viewsDecember 4, 2012Accounting

0

Fidler December 2, 2012 0 Comments

Do you know what is the basic accounting equation? I am trying to learn the double entry system but I can’t find the basic accounting equation.

score 0 · Answer 1 · 2012-12-02T19:31:40+00:00

Hi,

The basic accounting equation is :

Assets = Liabilities + Capital

which can be further broken down as follows:

Assets= Liabilities+ Equity + Profit and loss Account+ Other Reserves.