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Disclaimer

 

The information on this site cannot be relied on as accurate and up to date. We strongly advise you seek the advice of accounting and tax professionals before making any accounting related decisions.

Visit SM Accounting Ltd

This site contains free bookkeeping and accounting courses and is ideal for anyone looking to learn finance, bookkeeping or accounting. This site contains information on double-entry bookkeeping, basic accounting, credit control, business planning, etc. 

* We do not offer refunds on any digital products purchased on this site. 

Learn the Accounting Equation

April 19, 2016

 

What is the Accounting Equation?

 

The accounting equation is a formula in financial accounting. If accounts are kept correctly, then assets will always equal liabilities plus equity.

 

Accounting Equation for Sole Traders

 

Assets = Liabilities + Owners Equity

 

Accounting Equation for Corporations

 

Assets = Liabilities + Shareholders Equity

 

Learn more about the Accounting Equation by watching the above video. Alternatively watch our Accounting Equation video on YouTube - click here

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