JAMB - Accounts Principles Of Accounts (2023 - No. 6)
The principle of double entry developed from the axioms of accounting equation is given as
Liabilties + Equity = Net assets
Assets + Equity = Liabilities
Liabilities + Equity = Assets
Assets + Liability = Equity
Explanation
The accounting equation states that:
- Capital( Equity) = Assets - Liabilities
- Assets = Capital (Equity) - Liabilties
- Liabilties = Assets - Capital (Equity)
- Equity(Capital ) = Assets
- Capital( Equity) = Assets - Liabilities
- Assets = Capital (Equity) - Liabilties
- Liabilties = Assets - Capital (Equity)
- Equity(Capital ) = Assets
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