What is the accounting equation?

The accounting equation demonstrates that the total assets of a company equal the sum of its liabilities and shareholders’ equity (assets = liabilities + equity).

The basis of double-entry bookkeeping is the distinct relationship between a company’s liabilities, assets, and equity.

The basic accounting equation can be solved for if the first two terms are known, just like other equations. For instance,

Total Assets – Total Equity = Total Liabilities or

Total Assets – Total Liabilities = Total Equity.

A minus sign is used to move a term from the right side to the left side of the accounting equation.

How to Calculate

The solution to Beta Inc.’s basic Accounting Equation formula is:

Total Assets = Total Liabilities + Total Stockholders’ Equity

$359,268      =   $107,633       +      $251,635

$359, 268     =   $359,268

What is Accounting Equation-Accounting Equation-Urdu/Hindi

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