What must I do to write asset and liability and capital accounts?
What is meant by this questions... How must I tackle the questions... It's a question from my module of accounting and financial analysis... Please reply me within a short period of time! I really need help!!!!!
Homework Help - 2 Answers
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Answer 1 :
i'm not exactly sure what you're looking for but i'll try to help. assets=liability + capital or owners equity a balance sheet would include these accounts assets are: cash, prepaids, supplies etc. liabilities are what you owe, or haven't earned: accounts payable, notes payable, unearned rent your capital is your worth hope this helps
Answer 2 :
I'm also not entirely sure of the question but I'll take a different tack...If you have simply a list of transactions in no particular order and you need to arrive at an income statement, the steps are: - open up T accounts for each relevant line of the income statement --cash - this will be the main one you use, probably --other asset types - buildings, fixtures and fittings, stock, debtors --liabilities - creditors, overdraft, loans --owners' equity - add details of the transactions into the relevant T accounts - add down the T accounts so that each one has a credit or debit (or 0) balance - prepare a 'trial balance' to ensure that the debit and credit sides net off - take the items from the trial balance one by one into the correct income statement format Hmm, a good 4 years since I've done that, I surprised myself there.
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