What is the fundamental accounting equation?

Asked by Topperlearning User | 9th Jun, 2016, 12:29: PM

Expert Answer:

Accounting equation states the fact that for every debit there is an equivalent credit. The entire system of book keeping is based on this concept. It is expressed in fundamental accounting equation as:

Assets = Liabilities + Capital

Assets of business are always equal to the claims of owners and outsiders.

Assets= Capital+ Liability

Or

Capital= Assets-Liability

Answered by  | 9th Jun, 2016, 02:29: PM