Accounting equation is very important to understand accounting . It is simple formula which tells us that total assets of company always equal to total
liabilities and capital of company .
Accounting equation
Total Assets = Total capital + Total outside liabilities
If any transaction will happen , then either assets or liabilities or capital will change but the amount of both side of accounting equation will remain same .
In this video , you will learn basic fundamentals of accounting equation Categories and definitions of each category
liabilities and capital of company .
Accounting equation
Total Assets = Total capital + Total outside liabilities
If any transaction will happen , then either assets or liabilities or capital will change but the amount of both side of accounting equation will remain same .
In this video , you will learn basic fundamentals of accounting equation Categories and definitions of each category
