Core Accounting System Formats: Accounting Equation Layout (Copy)
Accounting Equation Layout
Core Accounting Equation – Standard Layout
- Assets = Capital + Liabilities
- Assets = Owner’s Equity + Liabilities
Expanded Accounting Equation – Examination Layout
- Assets = Capital + Liabilities
- Assets = Capital + Long-Term Liabilities + Short-Term Liabilities
- Assets = Capital + Drawings + Liabilities − Profit
- Assets = Capital − Drawings + Profit + Liabilities
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Vertical Exam-Ready Accounting Equation Format
| Left Side (Uses Of Funds) | Right Side (Sources Of Funds) |
|---|---|
| Non-Current Assets | Capital |
| Current Assets | Long-Term Liabilities |
| Current Liabilities |
Statement-Style Accounting Equation Layout (Recommended In Exams)
Assets
= Capital
- Liabilities
Detailed Exam Presentation Layout
Assets
- Non-Current Assets
- Current Assets
Equals
Capital
- Opening Capital
- Add: Profit
- Less: Drawings
Plus
Liabilities
- Non-Current Liabilities
- Current Liabilities
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Transaction Impact Layout Using Accounting Equation
| Transaction Effect | Assets | Capital | Liabilities |
|---|---|---|---|
| Increase | + | + | + |
| Decrease | − | − | − |
| No Change | 0 | 0 | 0 |
Accounting Equation With Profit And Drawings (Exam-Scoring Format)
Assets
= Capital
- Profit
− Drawings - Liabilities
Alternative Compact Exam Layout (Short Questions)
- Assets − Liabilities = Capital
- Capital = Assets − Liabilities
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Accounting Equation Used As A Check Format
| Description | Amount |
|---|---|
| Total Assets | xxxx |
| Total Capital | xxxx |
| Total Liabilities | xxxx |
| Capital + Liabilities | xxxx |
Common Accepted Symbols In Exams
- “=” Must Be Clearly Written
- “+” For Addition Of Sources
- “−” For Drawings Or Reductions
- Clear Headings Required (Assets / Capital / Liabilities)
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
One-Line Fast Recall Exam Format
Assets = Capital + Liabilities