Financial Transactions and Basic Accounting Equation

Financial Transactions and Basic Accounting Equation

            Financial transactions and the basic accounting equation is to add, subtract, or change the composition of assets, liabilities, and / or capital. Solving these equations is the result of the analysis of the impact of the financial transaction.To make it easier to understand the impact of changes in the fundamental accounting equation as a result of the financial transaction, let us examine the following case.Salon Accounting unsika owned Ny. Ayu, which is located at Jl. Joyo Utomo 504 Malang, recently opened in early 2007, was placed in the front room of his house. While the rooms are not included as assets of the salon, but it is considered rent.During the month of January 2007 the financial transactions carried out as follows:
1. Ny. Ayu 1,000,000.00 cash deposit as the first or initial capital investment in SalonAkuntansi unsika.2. Buying salon equipment for cash 300,000.005. Pay the room rent for the month of January at 100,000.00
   7. Buying on credit from shops Makmur 500,000.00 worth of salon equipment and supplies (suplies) for $ 200,000.00 salon.
   9. Borrowed money from the bank by signing a promissory term 3-month interest rate of 12% per year, $ 750,000.0014. Princess bridal makeup job done Ny. Yuli worth 450,000.00 and cash and direct dbayar15. Paid staff salaries for the month of January 150,000.0020. Completed work for Mother Harmini bridal makeup worth 550,000.00. received in cash and the rest as much as 250,000.00 will be paid in February 200722. Installment debt amounting to 200,000.00 Makmur Stores25. Paid electric bill for the month of January 75000.0029. Received from Mrs. Harmini installment debt to as much as 150,000.00 Salon30. Taken by Mrs. cash. Ayu amounting to 100,000.00 for his personal gain.31. Paid interest on notes for January of 7500.00
All financial transactions on the dates mentioned above will bring the impact of changes to the three components of the basic accounting equation (assets, liabilities, and equity).Effect of every financial transaction that the basic accounting equation can be seen in the following table: