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assets increase; liabilities increase
The debits in the accounting equation increase the amount that appears on the left side. The credits in the accounting equation do the opposite and increase any amount that appears on the right side.
acoounts receivable and capital
cash assets increase Equity increases as sales revenue increases and net income increases. No effect on Liabilities and Expenses
Debit Withdraw account and Credit Cash
assets increase; liabilities increase
The debits in the accounting equation increase the amount that appears on the left side. The credits in the accounting equation do the opposite and increase any amount that appears on the right side.
acoounts receivable and capital
cash assets increase Equity increases as sales revenue increases and net income increases. No effect on Liabilities and Expenses
Debit Withdraw account and Credit Cash
assets decrease; liabilities decrease
asset increased, liability increased
how does business and accounting affect in the society
Economic event is the 'Name of transaction where monetory values are involves"
The VAT can affect the accounting equation in two different ways. The accounting equation is ASSET=CAPITAL+LIABILITIES So, if VAT is OWED from HMRC (receivable) it will be an asset, so the asset will increase and the Capital will increase as well. ASSET+X=CAPITAL+X+LIABILITIES, where X is the amount of VAT received. If VAT is owed TO HMRC (payable), then the liabilities will increase, which means that the capital will decrease with the same amount. ASSET=(CAPITAL-Y)+(LIABILITIES+Y) where Y is the amount of VAT to be paid.
Rendering services on account increases accounts receivable, as well as equity (retained earnings) For example, a company has provided cleaning services for an amount of $200; the customer is allowed a three week credit assets = liabilities + equity accounts receivable (assets): increases with +200 retained earnings (equity): increases with + 200 +200 = +200
Assets decrese, liability decreases, and Owner's equity has no change. Assets=Liabilities+SE