Re: ::: vuaskari.com ::: FW: need info about mgt 101

Yes, Assets are created by Liabilities and Owner equity .The name "balance sheet" is based on the fact that assets will equal liabilities and equity every time. major reason that a balance sheet balances is the accounting principle of double entry.if balance sheet not balance there is likely a problem with one or more entries .

you buy a building of worth 100,000 you use 40,000 debt (loan ie liability ) and use 60,000 cash (owner equity )    this create an asset

Assets = Liabilities +Owner equity 

Building = Loan + Cash
100,000  =40,000 + 60,000

On Wed, Mar 4, 2015 at 11:10 PM, 123 <tayyabbhutta@msn.com> wrote:

 

 

salam!

 

Dear is it necessary, liabilities and assets must be equal in balance sheet statement, if yes then please explain why?

 

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