Interested to Buy Any Domain ? << Click Here >> for more details...
Let me know the situation when is a transaction affects one
side of accounting equation
- 1 Answers
- 4031 Views
- ACS, I also Faced
- E-Mail Answers
Answer / freethinker
Only one side of the accounting equation will be affected when one asset is used to acquire another asset or to replace another asset, when one liability replaces another liability, when stock is issued to replace a liability, when a cash dividend or stock dividend is declared. There are many other situations as well.
Here are some specific examples when only the left side of the accounting equation is affected. 1) A customer cannot pay an amount it owes and provides the company with a notes receivable. The company's asset Accounts Receivable will decrease and its asset Notes Receivable will increase. 2) A company prepays its insurance. As a result its asset Cash decreases and its asset Prepaid Insurance increases. 3) A company buys equipment for cash. The asset Cash decreases and the asset Equipment increases.
Here are some transactions that will affect only the right side of the accounting equation. 1) A company refinances its short-term debt with long-term debt. Short-term liabilities will decrease and long-term liabilities will increase. 2) A corporation issues common stock to replace its convertible bonds.
| Is This Answer Correct ? | 1 Yes | 0 No |
I am completed MBA finance & Mcom, I had 8 years experience in accounts field. I am interested in software. can shift my in software. whcih course i select
what is the difference between planned and non planned budgt
what is purchase consideration?
where do u get credit opening balance?
what is the journal entry for this bank reconcilation statement? BANK CHARGES DEBITED BY BANKER BUT NOT ENTERED IN CASH BOOK
Expand M C
what is journal entry for bank charges
25 Answers Bhoruka Aluminium, Genpact,
could you please suggest an institute for classes in accountancy near punjagutta?
how to maintain E-Commerce companies accounts
hi all, i'll be grateul if u can help me on this. I'v been selected as a PO in SBI. Simultaneously I'v got a job offer from British High Commission in New Delhi. Can anyone suggest which will be the better option??????????
EXPAND______________PWD
Why Copyrights,patents,goodwill etc.etc. falls under real account and not nominal or personal account? I know anything which affect trading & Profit & Loss accounts are nominal accounts.And the above do not affect the Trading or P/L accounts but on the other hand they are intangible and neither can they fall under real accounts as Real accounts are those that are not personal and they are tangible. Again in another way if we see, Patents, Copyright ,Goodwill etc. etc. kindoff acts as a representative of a person or a company like in the same way as a Bank or Company name,so they can they not fall under Personal Account??
Audit 
