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Week 2 - Lesson 3 Accounting Equation

IGCSE - Edexcel

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taj qaiser
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21 views

Week 2 - Lesson 3 Accounting Equation

IGCSE - Edexcel

Uploaded by

taj qaiser
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 18

Basics of Accounting

Task 1 – Starter Task


Key Vocabulary matching

@ASPSDubai
Topic: Accounting equation
Curriculum Reference: The Accounting Environment, he Accounting Equation and Double Entry
System, income statement

Learning Objective: To show increase and


decrease of assets & liabilities
Success Criteria:
I can Identify parts of accounting equation.
I can List types of assets and liabilities.
Explain the basic accounting terminology
• I can perform operations involving simple cases with the use of the accounting equation

@ASPSDubai
Assessment Criteria including WAGOLL Exemplars

Beginning Developing Good Very Good Excellent


8/9/17

Prior Knowledge
Assessment
Solve Mcqs 11-20
https://www.financestrategists.com/accounting/quiz/
multiple-choice/accounting-equation/
Teach and Model
Applications of the Accounting Equation
• When a business transaction occurs, it affects at least two
accounts, and the accounting equation ensures that the
company’s accounts will always balance.
• In the double-entry bookkeeping, each accounting entry debits one
account and credits another: if an asset account increases (a debit
entry), then either another asset account decreases (a credit
entry), or a liability or equity account increases (a credit entry).
• Any increase in expense will reduce owner’s equity and vice-versa.
Conversely, an increase in revenue will increase owner’s equity.

@ASPSDubai
1. The owners invests personal A: Increase
L: No Effect
cash in the business. E: Increase

2. The owner withdraws business A: Decrease


L: No Effect
assets for personal use. E: Decrease

3. The company receives cash from


a bank loan. A: Increase
L: Increase
E: No effect
Mid Plenary: ANSWER THE FOLLOWING QUESTION:

1.A company has assets of $1,000,000 and has liabilities


of $400,000. How much is the Capital?
2.B company has a liabilities of $500,000 and capital of
$700,000. How much are the assets?
3.C company has a assets of $4,000,000 and capital of
$2,800,000. How much are the Liabilities?

Item 1 Item 2 Item 3


C=A-L A=L+C L=A-C
C= A= L=
Plenary

Success Criteria:
• I can perform operations involving simple cases with
the use of the accounting equation
Accounitng equation
Accounitng equation
Group One
Accounitng equation
Group Two
Group Three
Group Four
Home Learning

July 1 - Paolo Reyes started a delivery service on July 1, 2020. The following transactions
occurred during the month of July.
● He invested $800,000 cash and Cars amounting to $200,000
● July 2 – Reyes borrowed $100,000 cash from PNB for
use in his business.
● July 7 – Bought tables and chairs from Orocan and
costing $45,000 on credit
Additional Support/reference content/video/reading

Quiz Practice
https://www.financestrategists.com/accounting/quiz/multiple-choice/acc
ounting-equation/

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