Accounting Equation: Definition, Examples, Solved Questions (2024)

Theoretical Framework of Accounting

An Accounting Equation is also called the Balance Sheet Equation. We all know that we record all the business transactions using the Dual Aspect concept. This means that each debit has an equal credit and vice-versa.

Suggested Videos

').appendTo(this.scroller));n2const.rtl.isRtl?(this.previous=this.$widget.find(".nextend-thumbnail-next").on("click",this.previousPane.bind(this)),this.next=this.$widget.find(".nextend-thumbnail-previous").on("click",this.nextPane.bind(this))):(this.previous=this.$widget.find(".nextend-thumbnail-previous").on("click",this.previousPane.bind(this)),this.next=this.$widget.find(".nextend-thumbnail-next").on("click",this.nextPane.bind(this))),this.slider.stages.done("BeforeShow",this.onBeforeShow.bind(this)),this.slider.stages.done("WidgetsReady",this.onWidgetsReady.bind(this))},t.prototype.renderThumbnails=function(){var t;this.parameters.invertGroupDirection&&(t=Math.ceil(this.slider.visibleRealSlides.length/this.group));for(var i=0;i

');if(this.parameters.invertGroupDirection?s.appendTo(this.$groups.eq(Math.floor(i/t))):s.appendTo(this.$groups.eq(i%this.group)),s.data("slide",e),e.$thumbnail=s,this.parameters.thumbnail!==c){var h=e.getThumbnailType(),n=p[h]!==c?p[h]:"";d('

'+n+"

").css("background-image","url('"+e.getThumbnail()+"')").appendTo(s)}if(this.parameters.caption!==c){var r=d('');switch(this.parameters.caption.placement){case"before":r.prependTo(s);break;default:r.appendTo(s)}if(this.parameters.title!==c&&r.append('

'+e.getTitle()+"

"),this.parameters.description!==c){var o=e.getDescription();o&&r.append('

'+o+"

")}}}var a="universalclick",l="onDotClick";"mouseenter"===this.parameters.action?(a="universalenter",l="onDotHover"):this.slider.hasTouch()&&(a="n2click"),this.dots=this.scroller.find(".nextend-thumbnail-scroller-group > div").on(a,this[l].bind(this)),this.images=this.dots.find(".n2-ss-thumb-image")},t.prototype.onTap=function(t){i||(d(t.target).trigger("n2click"),i=!0,setTimeout(function(){i=!1},500))},t.prototype.onBeforeShow=function(){var t=!1;switch(this.parameters.area){case 5:t="left";break;case 8:t="right"}t&&(this.offset=parseFloat(this.$widget.data("offset")),this.slider.responsive.addHorizontalSpacingControl(t,this)),this.renderThumbnails(),this.slider.hasTouch()&&(N2Classes.EventBurrito(this.$widget.get(0),{mouse:!0,axis:"x",start:function(){this.bar.width();this._touch={start:parseInt(this.scroller.css(n2const.rtl.left)),max:0},this.getScrollerWidth()this._touch.start?this.previousPane():this.nextPane(),Math.abs(e.x)<10&&Math.abs(e.y)<10?this.onTap(t):nextend.preventClick(),delete this._touch}.bind(this)}),this.slider.parameters.controls.drag||this.$widget.on("click",this.onTap.bind(this))),this.widthPercent=this.$widget.data("width-percent"),this.thumbnailDimension={widthLocal:this.dots.width(),width:this.dots.outerWidth(!0),height:this.dots.outerHeight(!0),widthBorder:parseInt(this.dots.css("borderLeftWidth"))+parseInt(this.dots.css("borderRightWidth"))+parseInt(this.dots.css("paddingLeft"))+parseInt(this.dots.css("paddingRight")),heightBorder:parseInt(this.dots.css("borderTopWidth"))+parseInt(this.dots.css("borderBottomWidth"))+parseInt(this.dots.css("paddingTop"))+parseInt(this.dots.css("paddingBottom"))},this.thumbnailDimension.widthMargin=this.thumbnailDimension.width-this.dots.outerWidth(),this.thumbnailDimension.heightMargin=this.thumbnailDimension.height-this.dots.outerHeight(),this.imageDimension={width:this.images.outerWidth(!0),height:this.images.outerHeight(!0)},this.sideDimension=.25*this.thumbnailDimension.width,this.scroller.height(this.thumbnailDimension.height*this.ratio*this.group+"px"),this.bar.height(this.scroller.outerHeight(!0)+"px"),this.horizontalSpacing=this.bar.outerWidth()-this.bar.width(),this.slider.sliderElement.on({SlideWillChange:this.onSlideSwitch.bind(this),visibleRealSlidesChanged:this.onVisibleRealSlidesChanged.bind(this)})},t.prototype.onWidgetsReady=function(){this.activateDots(this.slider.currentSlide.index),this.slider.sliderElement.on("SliderResize",this.onSliderResize.bind(this)),this.onSliderResize()},t.prototype.filterSliderVerticalCSS=function(t){};var e=!(t.prototype.onSliderResize=function(){if(this.slider.visibleRealSlides.length){if(this.lastScrollerWidth!==this.getScrollerWidth()){var t,i=1,e=this.getScrollerWidth(),s=e-2*this.sideDimension;if((t=e/this.thumbnailDimension.width)=t&&(this.localSideDimension=.1*e,i=(s=e-2*this.localSideDimension)/(this.parameters.minimumThumbnailCount*this.thumbnailDimension.width),t=s/(this.thumbnailDimension.width*i),(t=e/(this.thumbnailDimension.width*i))e;e++)i[e].$thumbnail.addClass("n2-active")},t.prototype.resetPane=function(){this.goToDot(this.currentI)},t.prototype.previousPane=function(){this.goToDot(this.currentI-this.itemsPerPane*this.group)},t.prototype.nextPane=function(){this.goToDot(this.currentI+this.itemsPerPane*this.group)},t.prototype.getPaneByIndex=function(t){return t=Math.max(0,Math.min(this.dots.length-1,t)),this.parameters.invertGroupDirection?Math.floor(t%Math.ceil(this.dots.length/this.group)/this.itemsPerPane):Math.floor(t/this.group/this.itemsPerPane)},t.prototype.getScrollerTargetLeft=function(t){this.lastScrollerWidth=this.getScrollerWidth();var i=0;t===Math.floor((this.dots.length-1)/this.group/this.itemsPerPane)?(i=-t*this.itemsPerPane*this.thumbnailDimension.width*this.ratio,0===t?this.previous.removeClass("n2-active"):this.previous.addClass("n2-active"),this.next.removeClass("n2-active")):(0

There are two approaches to record the transactions in financial accounting. One is the Traditional approach or the British Approach and another is the Modern Approach or the American Approach. Under the Modern Approach, we do not debit and credit the accounts. Here, we use the Accounting Equation to debit or credit an account. Thus, it is also called the Accounting Equation Approach. Now let us study the Accounting Equation in detail.

It is to be noted here that the Accounting Equation shall remain balanced every time. As we know that each transaction has a Dual aspect. Thus, each debit has an equal credit.

Analyze the following transactions under the Accounting Equation Approach.