Does anyone know of any good accounting sites that would have a lot of explanations on how manual accounting is done and also is in plain english I am canadian I would greatly appreciate if anyone knows of any good canadian sites that deal with some form of manual accounting.

Thanks a million again

Whenever I need to review a term or a calculation that has slipped my mind, I find that http://www.investopedia.com/ works well.

I have $125,000 in Assets at the beginning of the year and 65,000 in liabilities. At the end of the year I have 175,000 in assets and 55,000 in liabilities along with the following:
Stock 25,000
Dividends 8,000 and expenses iao 32,000. What is the amount of my revenue?

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Originally Posted by dlr

I have $125,000 in Assets at the beginning of the year and 65,000 in liabilities. At the end of the year I have 175,000 in assets and 55,000 in liabilities along with the following:
stock 25,000
Dividends 8,000 and expenses iao 32,000. What is the amount of my revenue?

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The easy way to do this is to use the accounting equation. Did you learn this?

A=L+OE(PIC+EC)

So, if you plug the numbers into the equation, you can solve it.

$125,000=$65,000+?

$125,000-$65,000= $60,000

$60,000 is your OE at the beginning of the year.

You also need your OE at the end of the year. Do the same thing.

$175,000=$55,000+?

$175,000-$55,000=$120,000

$120,000 is your OE at the end of the year.

OEb $60,000
+ NI 43000
+CS 25,000
Total $ 128,000
-Dividends (8,000)
=OEe $120,000

You need to find Revenue. You know what expenses are. They are $32,000. You know that Net income is Revenue less expenses. So you would add Net Income + Expenses to get the Revenue. So, Revenue would be $75,000. NI=R-E, R=NI+E, or E=NI-R.

If you plug in the numbers and then work from the bottom to the top you can get the answers. For example. To get the Total, you would add OEe with Dividends. Then you have Total, you then need to find Net Income. Well you know the total is $128,000, so you have OEb plus Common Stock and get $85,000, you then subtract that from $128,000 and you get $43,000 as the Net Income. Then you know expenses are $32,000. Add the $43,000 and the $32,000 and you get $75,000 for Revenue. If you can learn this equation you can find any answer you want. A=L+OE.