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Re: ::: vuaskari.com ::: FW: need info about mgt 101

Yes it is necessary, because your company have equal balance of debt and assets,,

e.g, you star a company with capital 4000, 
you post entry in asset side is cash in hand 4000, in equity side is 4000, Equal,
after you purchases machinery for 2000, by credit, 
then you put in asset side machinery by 2000 and in liability side raise creditor for 2000 ,(now your assets are 6000 and liabilities also 6000)  and same as going on, 
so it is must that, every financial entry effect two sides of the balance sheet , 
it can b one side, if you purchases machinery for cash, 2000, then you less cash in hand and reaised machinery by 2000 , but balance sheet is remain equal , so understand it, 




On Thu, Mar 5, 2015 at 10:10 AM, 123 <tayyabbhutta@msn.com> wrote:

 

 


salam!

 

Dear is it necessary, liabilities and assets must be equal in balance sheet statement, if yes then please explain why?

 

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