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Unformatted text preview: The Accounting Equation must always balance Assets = Liabilities + Owner's Equity A transaction that increases total assets must also increase total liabilities or owner's equity. + A transaction that decreases total assets must also decrease total liabilities or owner's equity.- Some transactions may increase one account and decrease another on the same side of the equation i.e. one asset increases and another decreases. and C lic k t o b u y N O W ! P D F-X CH AN G E w w w .d o cu-tr ac k .c o m C lic k t o b u y N O W ! P D F-X CH AN G E w w w .d o cu-tr ac k .c o m ‘T’Accounts Leger accounts presented in the format below are referred to as ‘T’accounts because they are divided into 2 sides. Therefore the outline of the account resembles the letter ‘T’ . Debit (Dr) Credit (Cr) The left-hand side of the T is the Debit (Dr) side The right-hand side of the T is the Credit (Cr) side....
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This note was uploaded on 04/07/2012 for the course COMMERCE 101 taught by Professor Louis during the Three '07 term at University of New South Wales.
- Three '07