Yes friends, so on the accounting equation
Let's do some practice
Let's see some questions practically
We saw in the previous clip
What is this, why, how it happens
But until it becomes practical
Until then, I said
What is the objective of the course? Practical, practical
approach
Come on, come on, come on, come on Where do you want to go,
sir?
Come on the tree
Write some practical questions
And do it with me
Come on, sir
Everybody write down
We practically
Understand accounting equation We are going
To understand
Example Example
Prepare
No, no, no, no
Stop, stop, stop, stop, stop, stop, stop
Write Shoda
Accounting equation
Everybody has to write
Please, it's my request
If you just put earphones in your ears and listen to it,
you won't get that productivity.
You register, wear it, write it, please listen to what I
say.
Okay, sir.
Show the accounting equation
on the basis of
each of the given transaction.
On the basis of each of the given transaction.
And also prepare a balance sheet.
I told you, that your balance sheet is made from this
equation.
The basis of the balance sheet is this accounting equation.
So, if we can put the transactions given below in the
equation, then we can make a balance sheet by looking at
that equation.
When we have the basis of that, write down which
transactions are there.
Let's write with different colored pens.
No. 1
Mohan started business with cash ₹80,000
Mohan started business
with cash ₹80,000
Purchased goods for cash ₹28,000
Purchased goods on credit ₹20,000
When you write an example by hand, then half of the things
will be clear.
When we go through in written way, that is the best way to
learn.
Always remember, the best way to learn and memorize is to
write.
Purchased furniture for cash ₹6,000
Paid rent ₹2,000
Received commission ₹500
Withdrew cash for private use ₹3,000
Sold goods on credit ₹6,000
Paid to creditors ₹15,000
₹15,000
Assets equal to liability plus stockholder equity
Yes sir, and what we have to do?
After every transaction, we have to check whether the
equation is tally or not.
After every transaction, we have to check whether the
equation is tally or not.
According to me, after every transaction, the equation will
be tally.
Let's check it out.
Solution
Write above, accounting equation.
This concept will also help in tally.
When you see here that every transaction has a double
effect.
Asset is equal to liability plus stockholder equity i.e.
capital.
The equation is always tally.
And the balance sheet is made from this equation.
So when you pass every journal entry in tally, after
posting every transaction, you will be able to see your
effect on the balance sheet, whether it is coming or not,
whether the balance sheet is tally or not.
It will always be tally.
Let's understand the accounting equation very well.
Let's present it in a better way.
Write down the equation.
What is the equation?
Assets
is equal to
liabilities plus capital.
Let's leave the heavy words.
Stockholder equity.
Let's work with simple words.
Assets is equal to liabilities plus capital.
Let's see.
Let's see, friends.
First equation.
Mohan started business with cash.
Rs. 80,000.
Two effects will go in this equation.
Now you have to find out in every transaction that what
will be those two effects.
And after those two effects, your equation will remain
tally.
I tell you this.
So, friends, if Mohan has invested Rs.
80,000 in business, then it is decided that your capital
will be Rs.
Your capital will be Rs. 80,000.
You will see Rs. 80,000 balance in your account.
And how is that money lying in Rs.
Is it in cash?
Or has it been transferred to the current account by
opening an account in the bank?
Sir, it is in the form of cash.
So, the first asset will take birth in the assets.
The first asset will take birth in the assets.
Cash.
In which you will see Rs. 80,000.
This is where the general entry is made.
This is where all the equations are.
This is where all the accounts are.
This is where the balance sheet is.
Everything is from here.
What we are doing today is the biggest Aadhaar of accounts.
The biggest effect.
Did you understand which thing is double effect?
How? What?
End of accounting.
I am telling you honestly.
So, friends, an asset called cash will be born in the
assets.
Cash will come to the business.
Cash is an asset for the business.
Why? Because by using this cash, the business will buy
goods.
It will sell them.
It will earn profit.
It will buy furniture.
It will do a lot of things.
So, this cash is an asset for it.
And who has given this to the business?
The owner has given it.
It has not been borrowed.
It has come from the owner.
That's why it will be written in the capital.
If it had been borrowed, this money would have come in the
business in the liability of Rs.
So, you see, is my equation tallied on both sides? Is my
equation tallied on both sides?
Yes, sir.
Now there is cash in my assets of Rs. 80,000.
The liability is zero.
So, assets Rs.
80,000 is equal to liabilities zero plus capital Rs.
Is my equation tallied?
Say yes or no, friends.
Yes.
What is my equation after the first transaction?
Sir, we have to write this after every transaction.
Yes, after every transaction.
After the first transaction, my final equation was made
like this.
Assets Rs. 80,000.
Is equal to liabilities zero plus capital Rs. 80,000.
Yes, sir.
After that, what was the second incident? What was the
second incident?
The second incident was purchased goods for cash Rs.
First of all, think in Hindi.
Sir, thinking in Hindi means think with common sense.
Thinking in Hindi means think with common sense.
If you buy cash goods worth 28000, how will it affect your
accounting?
How will it affect?
Just think that you are going to buy a mobile.
You are going to buy a mobile worth 28000.
And you will pay cash there.
So how will it affect your financial position?
Sir, if I tell you honestly,
I will lose 28000.
Absolutely right.
But think about the other aspect.
You will get a goods worth 28000.
So one hand you give, one hand you take.
One asset you give, cash.
And the other asset you get, mobile.
Okay, sir.
So this will happen here.
If I lose 28000,
I will lose 28000 from my cash.
Now I will write this with a red pen.
I will lose 28000 from my cash.
But another asset will take birth here.
Another asset will take birth here.
From 28000.
What is its name?
Goods.
What is its name?
Goods means goods.
We bought goods worth 28000.
There is no effect on liability.
There is no effect on capital of this transaction.
I told you in the last clip.
The double effect of the transaction can fall on both sides.
It can fall on both sides.
It can happen on one side and on the other side.
So in my first transaction,
The two effects of the transaction are falling on one side.
On the left side of the asset and on the right side of the
capital.
But in the second transaction,
Both the effects are falling on the same side with the same
amount.
Even then the equation will remain the same.
See, the proof is coming in front of you.
Even then the equation will remain the same.
See, the proof is coming in front of you.
Let's see it.
What will be the new equation?
What will be the new equation? 80 minus 28.
How much cash do I have left? 52,000.
How much are my goods worth?
For the first time, they are worth 28000.
52 plus 28.
How much is this total?
Sir, this is 80,000.
Is equal to?
Liability is still 0.
And capital is still 80,000.
There is no effect of this transaction on liability and
capital.
So it is still 0 and 80,000 as it is present.
So the total on the left side is also 52 and 28.
And the total on the right side is also 0 plus 80,000.
That is 80,000.
My equation is still the same.
Yes sir, yes, yes, yes, yes.
I understand.
It should also come.
Now think from a little expert angle.
See this.
What happened?
Two pieces of the 80,000 asset were made.
A piece of cash was left of 52,000.
And a new piece of goods of 28,000 came.
That is, we converted the 28,000 cash into an asset called
goods.
We converted one asset into another asset.
The equation is still the same.
Yes.
This equation is so beautiful.
What should I tell you?
So sir, read more poems in its beauty.
Read more poems, sir.
Let's go ahead.
Let's go to the next step.
I said okay.
What is my next step?
What the hell is my next step?
Purchased goods on credit.
20,000.
My goodness.
This time I bought goods for 20,000.
But a loan.
I am going to buy a mobile.
Tick, tick, tick, tick, tick, tick, tick.
I am going to buy a mobile.
And why am I so happy?
Because I will bring a mobile.
I will not give money.
I have spoken to the shopkeeper.
He is an old friend.
He was studying with me.
We used to eat together.
I said, man, I need a mobile for 20,000.
Give me a loan.
I will pay you back after a while.
Sir, he is such a friend.
Who does not take money.
Then you are mixing greediness in friendship.
Then there will be no accounting.
When you get something for free.
It will not have any monetary value.
Then there will be no discussion of accounting.
Hmm.
I mean, buy a loan.
But it should be like this.
You are paying back today or tomorrow.
It should be like this.
I am coming after buying a loan.
Still, I will get a mobile.
I will have to pay money later.
I am happy about this.
Okay.
So friends, what will happen?
Goods will come for 20,000.
Goods will increase more.
And this time.
Will it affect my cash?
No.
My cash will be as it is.
I have not repaid anything on 52,000.
And my luggage is 2828.
My luggage is 2828.
Because I bought another luggage for 20,000.
I have not repaid the money.
Sir, this is the total of the left side.
5248.
One lakh rupees.
And sir, look here.
Sir, look here.
Sir, the capital is still 80.
Sir, this equation is not getting tallied.
Sir, now it is wrong.
You had said 20 times.
This equation will always be tallied.
Sir, what did you do?
Think.
Think now.
You will get the answer now.
Life will become easy.
Think now.
Friends.
The goods of 20,000 that you have bought on loan.
Didn't this create your loan?
Not today.
You will have to repay it tomorrow.
It became a loan.
Yes, sir.
It became a loan.
Not today.
You will have to repay it tomorrow.
So, liability is born here.
A liability is born from 20,000 rupees.
What is its name?
Creditor.
This liability.
The creditor which was still 0.
Today, we will enter 20,000 in it.
We will enter the amount.
And now, power up.
52 plus 48.
1 lakh is the total of the left side.
And 20 plus 80.
1 lakh is the total of the right side.
Yes, sir.
It is not possible that this equation is not tallied.
Once upon a time, your special person.
Who keeps you awake till 1 or 1.30 in the night.
You react to each and every message thinking that
I should do this one.
I am not able to do it.
I should do this one.
I will have to learn this one.
I should do this one.
Or which one should I do?
Right, sir?
Which one were you doing?
It is not that.
It is an emoji.
He keeps you awake like this.
One eye is visible.
And he keeps you awake like this.
What is she saying?
Like this.
So, that person.
Whose sweet talks.
Without eating any sugar.
Increases your sugar level.
Once upon a time, it will be mismatched.
With regards to something.
But the principle given by Luca di Passioli.
Accounting equation cannot be mismatched.
It was tallied.
It is tallied.
It will be tallied.
It has been tallied for centuries.
With your two questions.
Will it not be mis-tallied?
Will it not be mismatched?
Sir, we have more options now.
What are you doing like this?
We have put three transactions now.
We have six more, sir.
This equation will get stuck somewhere.
Okay, no problem.
Do the test.
Convince your mind.
Who has stopped you?
Purchased furniture for cash 6000.
What will be the effect of this, son?
What will be the effect of this?
I am going to buy furniture.
And I will pay cash for 6000.
Cash will go for 6000.
And I will get a furniture for 6000.
Give one hand.
Take one hand.
So cash will be less than 6000.
And instead of goods,
I will get a new asset this time.
Furniture for 6000.
Sir, isn't furniture goods?
No, no, no, no, no.
I am your boyfriend.
My girlfriend.
She says no, no, no, no.
I remembered.
I will sing a song for her.
One minute.
Brother, goods is that thing which you buy to sell later.
And the furniture which you are buying you will use it in
business.
It is not your furniture shop.
It was written in the question that it is your furniture
shop.
You buy and sell furniture.
No, sir, it is not written anywhere.
So what else am I saying to you?
The thing you are buying to use furniture you will write in
its name.
The thing you are buying to sell later that comes in the
name of goods.
Oh, okay, sir.
Okay, okay, okay, okay.
There is a spice shop next to me.
Very big.
What is the shop?
He is a wholesaler.
So he buys spices to sell later.
So spices are goods for him.
He has done a good fitting in the whole shop.
Very good furniture.
He bought it to use.
He made it to buy and use.
So for him it will be shown in the same name in the
accounting equation in the name of furniture not in the
name of goods.
He will show spices in the name of goods.
Yes, sir, okay.
So how much will my cash be left?
My cash will be 52 minus 6 46 will be left.
And goods are as it is available at 48000.
There is no effect of this transaction on goods.
And a new asset came.
A new asset came of 6000 rupees.
What is its name?
Whose name is sir?
Furniture Whose name is sir?
Furniture So how much is the total of this side? 46, 48, 94
plus 6 is still 1 lakh.
Why? What did you do?
Think from an expert angle.
You friends turned a cash of 6000 into a furniture of 6000
asset.
You changed one asset into another asset.
What else did you do?
You changed a cash asset into a furniture.
The total has to remain the same.
The asset is ultimately the same.
Even if the father said to one son that you give 6000 to
the other son.
So one son's pocket was less than the other son's pocket.
What did the father care?
Nothing.
The house money is at home.
For him, both the sons are his.
In this way.
And on this side, there is no difference on this side.
Liability is 20000 and capital is also available at 80000.
There is no effect of this transaction on liability and
capital.
Equation is still tallied.
Greetings to Equation.
It's okay sir.
We won't give up.
Sir, somewhere or the other, the equation will get stuck,
somewhere or the other, it will get stuck.
I said, okay, get rid of the delusions of the mind.
Fifth point, okay, it is written in green color, so it is
written in green color.
Paid rent 2000.
Now, brother, this is very important.
This is a very important equation, paid rent 2000.
It is necessary to listen to it very carefully.
The one who will not listen to it carefully, he will regret.
And then in the last, what happens when the bird pecks the
field?
It is very important to understand this.
This point is for ever and ever.
How much did you pay the rent?
From 2000.
How much is 2000?
Rent paid 2000, one, two, three, four, five, yes.
So friends, friends, tell me one thing first.
What will be the difference?
Sir, my cash will be reduced from 2000.
There is nothing to say, think, listen, understand in this.
I said absolutely right.
One second.
Cash will be reduced from 2000.
There is nothing to say, think, listen, understand in this.
It did not come from green color.
Wait, wait, wait, wait, wait.
This is the writing pad.
Today he has come to know.
I am using it to teach a lot of concepts to my lovely
children.
So now he thinks that you are my value.
Ask me again and again.
He troubles me again and again.
There is life in all these things.
Sometimes it feels like it is deliberately cooking.
So how much will my cash be left?
It was 44.
Will paying the rent affect my goods?
No sir, the goods will remain as it is.
What is the effect on the goods?
Does it affect my furniture?
Sir, what are you talking about?
You paid the rent.
What does the furniture have to do with it?
Will the tenant take the furniture with the money from you?
Where did you write this?
This cannot happen.
On the other hand,
Will it not affect my liability?
Why? You paid the cash.
Whatever was the rent, you are paying it.
You are paying.
You are not saying that you will pay the rent later.
You have a loan on you.
There is nothing like that.
You are saying yes,
Landlord sir,
Landlord is at home.
I have rented the shop.
I don't press anyone.
You picked up the collar from behind like this.
Tell me how much is the rent?
I have so much rent.
Hold this.
I don't need a loan.
I don't need a loan cap.
Now don't go in front of the landlord like this.
Tomorrow morning it may happen.
The shop may have to be vacated.
That's why it's good to lower the collar.
Talk comfortably.
Okay sir.
Many of you will open your office tomorrow.
The professionals are watching me.
They will come to their practice.
So friends,
One thing,
Always, Always, Always in your life,
Always, Always remember,
If you can get a degree or education or knowledge,
Then no one is grateful.
Always take care of this.
What you are doing,
You are doing for yourself.
To the limit,
For your friends,
Those who love,
For your parents,
You can give a little happiness by doing this work,
But you will get the biggest benefit yourself.
You will get the most respect.
You will earn money, even if you share it with your family
and friends, it will be a good deed from your side, but
somewhere you would be the face, you will be the face of
everything, so friends, it will be beneficial to walk by
bowing down, it is said that the tree on which there are no
fruits, it remains stubborn and on which there are fruits,
it bows down, so when you get knowledge, knowledge, money,
then friends, learn to bow down, learn to bow down, that
thing will be very beneficial in
because friends, work is not done by being stubborn, even
if you have a strong aspect, money, degree, job, anything,
but life is so vast that sometimes you need something,
sometimes someone's, sometimes someone's, sometimes
someone's, sometimes someone's, sometimes someone's,
sometimes someone's, in life, anyone can need anyone,
anybody, a person can need an animal, if a very big problem
occurs in someone's body, then you know, cow urine is said
to drink, I am talking about a very big problem,
do not want to take the name, what is what is not, so when
a person can have such a situation, that he has to do all
this to save his life, then on this earth, if you get
something, it will not be a very big event, always be
humble, be calm, with that your inner mind, your inner
satisfaction will also be very high, you
will never be worried, otherwise this ego and all these
things will make you dependent on others, you will think
that I have a degree, he will respect me, and you are in
great ego, thinking that I have done a great job, you have
sown the seed for yourself, now whenever he will respect
you, you will be happy, whenever he will not do it, you
will be worried, you got a degree and gave him your key, go
son from the remote, go son from the remote, you will be
happy if you say, you will be sad if you
not say, you will become like this, you have to keep the
keys in your own hands, yes, sir, right, okay, we will keep
you in mind , yes, good, now what will be the second effect
of this, sir, we have gone in the spiritual line, no
problem, sometimes it should be gone, it is a very good
line, friends, what will be the second effect of what will
happen when you pay rent to the landlord 2000 rupees, then
rent is an expense, yes sir, yes, rent is an expense, you
are absolutely right, You are
right.
What will happen with the expense?
Sir, our profit will fall down with the expense.
Very good.
And the direct effect of the profit is on the capital, on
the owner's account.
So this expense of 2000 will be minus from the capital and
your capital will be 78000.
The total of this side was 44, 48 and 6 which is 98000. The
total of this side was 20 and 78 which is 98000.
The total of both sides is 98000.
Friends, the equation is still tally.
I would like to say one line to you that the effect of the
expense is that it is reduced from your capital on one side
and on the other side if you have paid it in cash, then it
is reduced from cash.
And sir, if the expense is loan and we have not paid it, it
will be less than the capital and will be added to the
liability.
If you do not pay in cash, then there will be no effect on
cash.
So here we will add it in the liability.
Here we will add it in the liability.
We will reduce it from capital and add it in the liability.
Reduce it from capital and add it in the liability.
What will be the effect of the income?
In a little while, the effect of the income will come.
If you want, write somewhere on the side that what is the
effect of the expense?
What is the effect of the expense? Minus from capital
and this is the first effect.
This is the first effect that it will be minus from
capital. And what will be the second effect?
Friends, if you have paid it if paid
then it will be minus if you have paid in cash, then from
cash and if you have paid in cheque then from the bank
balance.
And if you have not paid then it is a loan.
If it is an expense loan then it will be added to your
liability.
Now as we were paying so what we did is we reduced it from
cash and reduced it from capital.
The effect is equal on both sides.
If it was a loan, then we would have reduced it from capital
So on this side, it was minus 2000 and on this side, it was
plus 2000.
On this side, zero effect on the right-hand side.
And there will be no effect on the loan case.
Then also the equation will remain the same.
Yes sir, then also the equation will remain the same.
This is the thing.
So friends, now if I ask you that if I have an income if I
have an income transaction what will be the effect of that?
It should be opposite.
If the expense income is opposite then its effect should
also be opposite. The first effect of the income will be
that it will be added to the capital.
The first effect of the income will be that it will be
added to the capital.
And what will be the second effect of the income?
If we have received it if we have received the money then
we will add it to the other side.
If we have got cash, then in cash if we have got cheque,
then in bank balance.
Or else
Or else if the other person has said that he will give the
money.
For example, I have taught you tuition.
So this is my income.
So on one hand I will add it to the capital.
And on the other hand if you have given me the fees then I
will add it to the cash.
And if you have transferred from cheque, phone,
Paytm, UPI, Google ID, credit card, debit card then I will
add it to the bank balance.
Or else
If you have given me some time, then I will give you.
And if I have a feeling in my heart then I will give you.
No problem.
If loan then what will happen?
I will give birth to a new asset whose name is accrued
income.
Whose name is accrued income.
This is my asset.
So this will be my second effect.
This will be my second effect.
Second effect.
Accrued income.
What is the meaning of accrued income? What you have earned
but you have not received yet.
Income earned but not received.
It will become your asset.
Why sir?
The money has not come but it is going to come.
Okay. So the meaning of asset is whether the money has come
in the form of cash in the bank or it is going to come.
The name is accrued income.
The name is Siddhu.
Siddhu.
The name is Siddhu.
We will go ahead.
Oho.
What is this? What is this?
This is something else.
What is our next point? We have received a commission of
500 rupees.
We have received a commission of 500 rupees.
We have to come to the next page, right?
Yes, sir.
Come to the next page.
And start writing from here.
Take this.
We have reached here.
Yes, sir.
We have received a commission of 500 rupees.
So, there is nothing to say.
My cash balance will go above 500.
My goods will not be affected.
My furniture will not be affected.
So, my cash balance will go above 44,500.
My cash balance will go above 44,500.
My goods will still be of 48,000.
My furniture will still be of 6,000.
On the other hand, I have received the money.
There is no point of debt.
So, my liability will also be 20,000.
And, and, and, commission is an income.
So, there will be an add in my capital.
There will be an add in my capital.
That income will definitely be there.
I got it.
I got the money.
That's why I added it in cash.
If I had not got it,
I would have given birth to a new asset.
In the name of accrued income.
And there I have to add in capital.
So, what is the total of both sides?
Calculator, come here, son.
Tell me the total of both sides.
44,500 plus 48,000 plus 6,000.
The total on this side is 98,500.
Good.
And on this side, 20,000 plus 78,500.
This is also 98,500.
Sir, it has become 7 points.
No, it has become 6 points, sir.
The solution of the equation is not visible.
Maybe it is not visible.
Let's see.
Still, we have to go ahead.
We are learning.
Next point is very precious.
Next point is very, very precious.
Withdrew cash for private use, 3,000 rupees.
Whatever cash is lying in the business, from this, the
owner is taking 3,000 rupees cash home.
From this, the owner is taking 3,000 rupees cash home.
His wife has to go for some shopping.
Madam's call came.
Today, come with taking 3,000 rupees.
Elder brother's pocket was empty.
He said, there is cash lying in the business.
Take 3,000 rupees from here.
Keep it in your pocket.
And he went to fulfill his wife's wish.
He went to fulfill his wife's wish.
Yes, sir.
So, what will happen?
The balance of cash will decrease from the business.
3,000 rupees.
Yes, sir.
And the balance of cash will be 41,500 rupees.
The balance of cash will be 41,500 rupees.
Good.
And...
This has no effect.
Goods will still be of 48,000 rupees.
Furniture will still be of 6,000 rupees.
Liability is nothing.
It will remain 20,000 rupees.
And my capital will decrease.
My capital will decrease.
It will be minus.
From how much money?
From 3,000 rupees.
It will remain 74,500 rupees.
Sir, why?
What are you saying?
Is it a question to come to the first step?
When the money was invested in the business by the owner,
you had added it in cash and here you had added it in
capital.
So, if he takes money out of the business, just reverse it.
Minus from cash and minus from capital.
When we add money in capital while investing, what will we
do while withdrawing money?
We will minus from capital.
When money is added in cash while investing, how will it be
minused while withdrawing money?
Oh, I understand.
Sir, that's very much okay.
Very, very okay.
7th point is also done.
8th point.
You sold things worth 30,000 to 40,000.
Life Jingalala.
And you sold a loan.
The biggest thing is that you sold a loan.
Look at this, friends.
Look at this very carefully.
You had goods lying around.
Goods.
How much were the goods worth?
Now you check how many goods we have.
There are goods worth 48,000.
So what did you do?
You took goods worth 30,000 out of this.
You took those goods whose cost price was 30,000 and you
sold them.
For how much? 40,000 out of 40,000.
40,000.
And you didn't get this money.
40,000 is a loan.
You sold a loan.
And its effect will be that you have a profit of 10,000.
If you are selling goods worth 30,000 in 40,000, then you
have a profit of 10,000.
Sir, tell me one thing.
Aren't you saying something wrong?
I said, which one?
Sir, when we sold goods worth 30,000 in 40,000 and we
didn't get the money, then how did we get a profit?
We didn't get the money yet.
It's a loan sale.
Accounts, friends, are done on an accrual basis.
Accrual basis means that even if you don't get the money,
you will get it.
You have done a loan sale.
In 99% cases, you will get the money.
Only 1% happens.
There is a bad debt.
A person runs away with the money.
It's Diwali.
He can't give the money.
That happens in 1% cases.
He will give you the money.
He didn't come.
He is going to come.
There is no problem.
You can enter it.
This is accounting.
You have done a sale.
You have made a bill.
You must have taken some return from it.
Then all the money is in your hands.
Have you seen the movie, Dhol?
When he disappears with the jewellery, what does the uncle
say about Rajpal Yadav?
All the money is in his hands.
It's not that easy to take someone's money.
No one will take your money.
You won't get the money.
The principle of accounting says, record it.
No problem.
Record it.
Okay, sir.
We will have to enter.
Now tell me what will be the effects of this?
What will be the effects of this?
Look, friends.
My 30,000 things will be gone.
Absolutely right.
30,000 of the goods kept with me will be reduced.
Because I don't have that stuff anymore.
It's gone.
In return for that, a new asset of mine has been born.
Its name is debtor.
40,000 rupees.
If I had got this 40,000 in cash,
I would have added it in cash.
If I had got it in cheque,
I would have made an asset in the name of the bank and
written it there.
But, if it's a loan, we call it a debtor.
That money is coming from somewhere.
That debtor.
It's our asset.
Because the money hasn't come, but it's going to come.
It's going to come.
So, we will show it as an asset.
40,000.
So, friends.
One of your assets has been reduced.
From 30,000 goods.
And one of your new assets has been born.
We have taken 40,000.
So, if you see, your asset side is getting affected.
10,000 will go up.
Your asset side.
Your left-hand side.
Your asset side, means your left-hand side, will go up by
10,000.
Minus 30,000, plus 40,000, 10,000.
And this profit of capital, you will add it in capital.
So, the other side will also go up by 10,000.
Yes, sir.
We will add this in capital.
So, the other side, right-hand side will also go up by
10,000.
This is the effect of this transaction.
Okay, sir.
Come here.
So, there is no effect on cash.
Cash, after this point, will remain the same.
41,500.
What are you doing? 41,500.
What will be the effect on goods, friends?
Sir, goods will be reduced.
Minus 30,000.
Very, very good.
Goods will remain.
Only, 18,000 will remain.
Goods will remain for 18,000.
No effect on furniture.
Furniture, as it is, will remain for 6,000.
On the other hand, no effect on liability.
Liability will remain for 20,000.
And that 10,000 rupees, that, friends, your profit will be
added in capital.
And your capital will be 84,500.
84,500.
And, a new asset will be born.
A new heading will come up, whose name will be debtors.
A new asset will be born, whose name will be debtors.
Yes, sir.
And how much balance will come in debtors? 40,000.
Now see, whether the equation is tallied on both sides or
not.
41,500, plus 18,000, plus 6,000, plus 40,000.
105,500.
What's wrong?
Plus 6,000, plus 40,000.
Oh, my God! 78,500 minus 3,000.
This was supposed to be 75,500.
Okay, okay, okay, okay.
Okay.
75,500.
Okay, okay, okay.
And this will be 85,500.
Okay, okay.
You see, friends,
I got to learn one more thing from here.
Sir, I am getting to learn by mistake too.
I got to learn one more thing from here.
What? If we make a mistake in plus or minus, then that
equation will also trace.
When there is a mistake, then it will not be able to find
out.
No problem.
You will find out later.
Hmm.
Okay, sir.
Okay.
So, 20 plus 85,500.
The total on this side is also 105,500.
Our last point.
We paid the creditors 15,000.
So, our cash will be reduced by 15,000 on one side.
And on the other side, our loan will be reduced by 15,000.
If we are paying a loan, then the loan will also be reduced
and the money will also be reduced.
Okay, fine.
The money is gone, but the loan is also gone.
Let's think like this.
So, this will remain.
Cash 26,500.
Yes, sir.
Goods as it is 18,000.
Yes, sir.
Furniture as it is 6,000.
And debtors as it is 40,000.
On the other side,
Liability 20 minus 15,000.
5,000.
And capital today also 85,500.
The total on this side is 26,500 plus 18,000 plus 6,000
plus 40,000 90,500.
And here, 5,000 plus 85,500.
The total on this side is also 90,500.
90,500.
Okay, sir.
So, friends, we have seen 9 out of 9 points.
After the hard effect, our equation remains tally.
No one is going to stop it.
Our equation remains tally.
No one can stop it.
Tomorrow, today and tomorrow, this equation will remain
tally.
Asset is equal to liability plus capital.
After every transaction,
This is how we make a balance sheet.
In the next clip, we will show you how to make a balance
sheet using this.
Thank you and bye bye for now.
For any doubt contact us.