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1.6 Show the dual aspect, as it affects the accounting equation (assets - liabilities = capital),...


1.6 Show the dual aspect, as it affects the accounting equation (assets - liabilities = capital), of the following transactio
1.6 Show the dual aspect, as it affects the accounting equation (assets - liabilities = capital), of the following transactions for a particular business: • owner starts in business with capital of £8,000 in the bank • buys a computer for £4,000, paying by cheque • obtains a loan of £3,000 by cheque from a friend • buys a van for £6,000, paying by cheque
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Transaction No Assets Liabilities Capital Explanation
1     8,000.00                 -       8,000.00 (Buisiness started bank balance (Asset) as Capital
2     4,000.00                 -                 -   Buys a computer(Asset) for cash/bank (Asset)
(4,000.00)                 -                 -  
3     3,000.00      3,000.00               -   Obtains a loan (Liability) by Cheque (Asset)
4     6,000.00                 -                 -   Buys a Van (Asset) for cash/bank (Asset)
(6,000.00)                 -                 -  
Total 11,000.00      3,000.00     8,000.00

Total Asset = 11,000

Total Libilities = 3,000

Capital = ( Assets - Liabilities ) = 8,000

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