How would I solve this equation: Purchased additional office equpment for $1,000, paying $400 in cash and the balance on account.

dxviii

Credit Cash for $400 and Credit Accounts Payable $600

Debit Office Equipment for $1,000

I hope this helps... Have a blessed day!

CaptainForest

I agree.

Dr. Office Equipment 1,000
Cr. Cash 400
Cr. AP 600

sajalarora

For Purchase Of An Additional Asset So Assets Got Increased By The Amount Of $ 1000 And As The Cash Of $ 400 Goes Out So Assets On The Other Hand Got Decreased By The Amount Of $ 400 While For The Remaining Amount Of$ 600 Which Becomes Liability For The Business Of $ 600

Thus, In An Accounting Equation Form The Follwoing Is The Presentation

Assets = Capital + Laibilities
For Purchase Of (+)1000
Asset
For Cash Goes (-) 400
Out
For The Remain.
Liabilty Created (-)600

-----------------------------------------------------------------
Equation 600 = 0 + 600
------------------------------------------------------------------

While Entry Will Be

Office Equipment A/c......dr 1000
To Cash A/c 400
To Party's A/c 600

ddplais

Purchased additional office equpment for $1,000, paying $400 in cash and the balance on account.
debit to office equipment
credit 400 cash
credit 600 accounts payable