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

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Originally Posted by Faterria

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

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Credit Cash for $400 and Credit Accounts Payable $600

Debit Office Equipment for $1,000

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

I agree.

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

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 Following Is The Presentation

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

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Equation 600 = 0 + 600
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While Entry Will Be

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

Quote:

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Originally Posted by Faterria

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

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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