Question

Dubai Women's Campus BUS 1503 Accounting for Managers Demonstration of the Basic Accounting Equation Anwar won a grand prize of AED 1.000.000 during the recent Dubai shopping festival. He decides to open a shop selling a variety of mobile phone accessories. Day 1: Anwar opens a bank account in the name of the business called "Funky Fones" and deposits AED 500,000.- Assets - Liabilities + Owner's Equity 1.000.000 500.000 500.000 Day 2: Anwar buys Furniture from Marlin Furniture for AED 100,000 on credit Assets Liabilities + Owner's Equity WC. 600 1000. OCD Day 3: Anwar buys many accessories from different suppliers for AED 200,000. He pays cash for all his purchases. Assets Liabilities Owner's Equity 1.000.000 Qoo.co $60,000

Answer 1

Sol Liabilities owner's Equity Days Bank | + Furnitures + Accessories 500,000 500,000 + 100,000 100,000 3. 200000)+1 200,000 300,000 + 100,000 + 200,000 100,000 + 500,000

Working Note: Dayl. Anwar Deposited AED 500,000 in the name of the business called Funky Fones". Baute Increased by AED 500,000 Owner's Equity Increased by AED 500,000 Day 2. Anwar buys furniture on Credit for AED 100,000 Increase in Furniture by AED 100,000 Increase in liabilities by AED 100.000

Days Anwer buy's Accessories for AED 200,000 by Cash Decrease in Boule by AED 200,000 Increase in Accessories by AED 200,000 - Accounting Equation - Asset's - liabilities + Owness Equity خاعیلی = Bank & furniture & Accessories = 300,000 + 100,000 + 200,000 . 600,000 Liabilities at 100,000 Owner's Equity > 500,000 = Liability + Owner's Equity. z 100,000 + 500,000 = 600.000 Asset's & Liability + Owner's Equity 600,000 = 600,000