Show the effect of each transaction on the accounting equation: Assets = Liabilities + Equity. Transactions are: a) Started business with N25,000 in cash. b) Bought office fixtures for N5,900 in cash.

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Asked on April 5, 2026Accounting

This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.

Accepted Answer · 2026-04-05T18:13:09.436Z

Here's how each transaction impacts the accounting equation (Assets = Liabilities + Equity): a) Started business with N25,000 in cash. Impact: Assets (Cash) increase by N25,000 and Equity* (Capital) increases by N25,000. Equation:* Assets = Liabilities + Equity b) Bought office fixtures for N5,900 in cash. Impact: Assets (Office Fixtures) increase by N5,900 and Assets* (Cash) decrease by N5,900. Total assets remain unchanged. Equation:* Assets Assets = Liabilities + Equity c) Paid N15,000 cash into the bank. Impact: Assets (Bank) increase by N15,000 and Assets* (Cash) decrease by N15,000. Total assets remain unchanged. Equation:* Assets Assets = Liabilities + Equity d) Paid N33,000 more into the business by cheque. Impact: Assets (Bank) increase by N33,000 and Equity* (Capital) increases by N33,000. Equation:* Assets = Liabilities + Equity e) Bought computer printer for N25,000, paying by cheque. Impact: Assets (Computer Printer) increase by N25,000 and Assets* (Bank) decrease by N25,000. Total assets remain unchanged. Equation:* Assets Assets = Liabilities + Equity f) Bought more office fixtures for N10,000, paying by cheque. Impact: Assets (Office Fixtures) increase by N10,000 and Assets* (Bank) decrease by N10,000. Total assets remain unchanged. Equation:* Assets Assets = Liabilities + Equity g) Sold some of the office fixtures for N3,000, cash being received. Impact: Assets (Cash) increase by N3,000 and Assets* (Office Fixtures) decrease by N3,000. Total assets remain unchanged. Equation:* Assets Assets = Liabilities + Equity h) Paid N5,000 cash into the bank. Impact: Assets (Bank) increase by N5,000 and Assets* (Cash) decrease by N5,000. Total assets remain unchanged. Equation:* Assets Assets = Liabilities + Equity i) Bought a scanner for N10,500, paying by cheque. Impact: Assets (Scanner) increase by N10,500 and Assets* (Bank) decrease by N10,500. Total assets remain unchanged. Equation:* Assets Assets = Liabilities + Equity

Accepted Answer · 2026-04-05T18:13:09.436Z

Here's how each transaction impacts the accounting equation (Assets = Liabilities + Equity): a) Started business with N25,000 in cash. Impact: Assets (Cash) increase by N25,000 and Equity* (Capital) increases by N25,000. Equation:* Assets = Liabilities + Equity b) Bought office fixtures for N5,900 in cash. Impact: Assets (Office Fixtures) increase by N5,900 and Assets* (Cash) decrease by N5,900. Total assets remain unchanged. Equation:* Assets Assets = Liabilities + Equity c) Paid N15,000 cash into the bank. Impact: Assets (Bank) increase by N15,000 and Assets* (Cash) decrease by N15,000. Total assets remain unchanged. Equation:* Assets Assets = Liabilities + Equity d) Paid N33,000 more into the business by cheque. Impact: Assets (Bank) increase by N33,000 and Equity* (Capital) increases by N33,000. Equation:* Assets = Liabilities + Equity e) Bought computer printer for N25,000, paying by cheque. Impact: Assets (Computer Printer) increase by N25,000 and Assets* (Bank) decrease by N25,000. Total assets remain unchanged. Equation:* Assets Assets = Liabilities + Equity f) Bought more office fixtures for N10,000, paying by cheque. Impact: Assets (Office Fixtures) increase by N10,000 and Assets* (Bank) decrease by N10,000. Total assets remain unchanged. Equation:* Assets Assets = Liabilities + Equity g) Sold some of the office fixtures for N3,000, cash being received. Impact: Assets (Cash) increase by N3,000 and Assets* (Office Fixtures) decrease by N3,000. Total assets remain unchanged. Equation:* Assets Assets = Liabilities + Equity h) Paid N5,000 cash into the bank. Impact: Assets (Bank) increase by N5,000 and Assets* (Cash) decrease by N5,000. Total assets remain unchanged. Equation:* Assets Assets = Liabilities + Equity i) Bought a scanner for N10,500, paying by cheque. Impact: Assets (Scanner) increase by N10,500 and Assets* (Bank) decrease by N10,500. Total assets remain unchanged. Equation:* Assets Assets = Liabilities + Equity

Show the effect of each transaction on the accounting equation: Assets = Liabilities + Equity. Transactions are: a) Started business with N25,000 in cash. b) Bought office fixtures for N5,900 in cash.

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Show the effect of each transaction on the accounting equation: Assets = Liabilities + Equity. Transactions are: a) Started business with N25,000 in cash. b) Bought office fixtures for N5,900 in cash.

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