Assets
The definition of an asset of a business.
Resources owned by a business that provides future benefits.
The definition of a liability of a business.
An obligation owed by a business expected to be settled in the future.
The definition of equity of a business.
Owner's claim on the net assets of a business.
The asset account carries this balance.
Debit balance.
The liability account carries this balance.
Credit balance.
The capital account carries this balance.
Credit balance.
The double entry, "Business bought machinery by cheque $1,000".
Dr Machinery $1,000
Cr Cash at bank $1,000
The double entry, "Business took a bank loan of $10,000 from MF Bank".
Dr Cash at bank $10,000
Cr Loan from MF Bank $10,000
The double entry, "Owner started the business with $100,000 deposited into the business bank account".
Dr Cash at bank $100,000
Cr Capital $100,000