Accounting Equation
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Classification of Accounts and the Accounting Equation
MS: Persamaan Perakaunan · EN: Accounting Equation · ZH: 会计等式
Meaning
The accounting equation is the foundation of the double-entry system, showing the relationship Assets = Owner's Equity + Liabilities. It always stays balanced because every transaction affects at least two accounts.
Example
For example, the owner starts Maju Jaya Enterprise with cash capital of RM40,000. Assets (cash RM40,000) = Owner's Equity (RM40,000) + Liabilities (RM0), so the equation balances.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 4