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State the accounting equation

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Asset = Equity + Liability

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Assets= Liabilities+Equity

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Josiah

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Assets=Liabilities+Owner’s Equity

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assets = equity+ liability

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If Sales revenue = $40000, Sales returns=$5000 and cost of sales = 20000, what is the gross profit

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15000

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Josiah

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Gross profit 40000-5000-20000

=15000

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150000

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What is the difference between current assets and non-current assets

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15000

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Current assets are within one accounting period while Non current is across multiple

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Current assets are within one accounting period while Non current is across multiple

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Josiah

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Non-current assets last longer than an accounting period while current assets are ulsed up within the accounting period

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current assets are at your disposal while non current are moenytary

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current assets like mmoney while non current assets are inventory and property

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How long it takes something to turn into cash

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What is the difference between income and expenses?

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Income is the money you earn while expenses is the money spent

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Income refers to money you earn through various means while Expenses refer to money you spend on various accounts

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Income is amounts earned from the activities of the business. While Expense is amount incurred to earn income in the same accounting period

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income is the money u make from sales or other forms of income while expenses are cost having to be paied

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If business has the following balances, what is the capital?

Rent expense 4000 Trada payables $12000

Salaries 6000 Capital =?

Motor vehicles 20000

Fixtures and fittings $30000

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48000

(20000+30000)-(12000-(4000+6000))

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Capital=(30000+20000)-(4000+12000+6000)

=28000

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Capital=Assets−Liabilities=50,000−12,000=$38,000​

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Josiah

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Assets=20,000+30,000+4,000+6,000=60,000Liabilities=12,000Capital=60,000−12,000=48,000​

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what is the journal entry for:

Sold goods costing $4000 for $9000 on credit

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Dr Trade Receivables 9000

Dr Cost of Sales 4000

Cr Inventory 4000

Cr Sales Revenue 9000

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dr trade receivables 9000

cr inventory 40000