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Require help to do accounting equation.

Mr_SpectreMr_Spectre MalaysiaRegistered Posts: 2
Good morning guys. I'm a newbie & having difficulty to complete homework about accounting equation. My lecturer provide answer for the balance but after multiple attempts, I failed to get the answer.(pretty sure something wrong with my steps) The only things I knew about accounting equation are both asset & owner equity sides must be on par.

Answers

  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    Assets - Liabilities = Capital
    Things we OWN minus things we OWE = Capital
    Assets and Liabilities are a snapshot of right now, so what have we now. For example you may own a car, which is an asset. You may have a loan on the car which is a liability.
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