Saturday, January 3, 2015

If you start your own business, how would you record your start-up investment in an accounting equation? -

The Accounting Equation is Assets = Liabilities + Owner s EquityFor the transaction you mentioned, you would beDebit AssetsCredit Owner s Equity(Liabilities would be unchanged.)So if you re starting a business with $100, you would debit Cash for $100 and credit Owner s Equity for $100.

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