Barrie Bookkeepers Inc

What is the Accounting Equation?

The most basic formula is Assets will equal the total of Liabilities plus Owner's Equity. If an owner invests one thousand dollars into his business by writing a cheque on his personal bank account and depositing the money into the business bank account, then the Owner Equity account is credited and the bank account is debited. Assets (bank) of one thousand will equal Liabilities at zero plus Owners Equity of one thousand.