Accounting examples for Business?
Could someone please put these questions into “simple terms” and give me an example of each? Thank you so much!
*Decrease an asset and decrease a liability.
*Increase an asset and increase owner’s equity
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*Decrease an asset and decrease a liability.
A good e.g. would be payment of an amt you owe your creditor. When you make payment, your cash is decreased and your liability also decreases since the guy has been paid. You’d:
Dr A/cs payable
Cr Cash
*Increase an asset and increase owner’s equity
An e.g. would be if the owner puts in cash as equity. Remember the equation A = L + E? You’d:
Dr Cash
Cr Owner’s equity
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