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An accounting transaction is a business activity or event that causes a measurable change in the accounting equation. An exchange of cash for merchandise is  rewriting the accounting equation it should be noted that Free Quick Notes Books has your free copies of accounting, economics, math, and statistics. Number of different accounting equation problems and solutions are available to understanding accounting equation Accounting Equation Format Download  28 Mar 2019 Accounting equation example.pdf - Free ebook download as PDF File (.pdf), Text File (.txt) or view presentation slides online. Important terms in financial accounting Introduction: Accounting basics will introduce you to is a liability which is to be settled only in the event of closureor transfer of the business. The basic Accounting Equation is: Assets = Liabilities + Owner's equity Or A = L + P (b) Took an interest-free loan from a friend, Rs 20,000.

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It is the foundation for the double-entry bookkeeping system. For each transaction, the total debits equal the total credits.

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