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sir, I have understood the accounting equations, and they make sense. I realised the idea is to pick the correct equation and not fixing the equation to make it correct. Right?
– increase in assets
– increase in expenses
– decrease in liabilitieswhat about Receivable’s, is it increase in income or increase in assets?
What about the above list, is it used only to make sure double entry is correct or its a new method of double entry. I don’t remember using it in my ACCA introductory level. I simply used to debit and credit without considering anything else.
– increase in assets
– increase in expenses
– decrease in liabilitieswhat about Receivable’s, is it increase in income or increase in assets?
Yes – the idea is to pick the correct equation.
Receivables are an asset.
It is not a new method of double entry!!! It is simply one way people learn when to debit an account (we debit for an increase in assets, an increase in expense, or a decrease in liabilities).
Please watch my lectures – I explain this in detail in the lectures!!
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