Making a financial transaction worksheet is easy. You just have to know how to analyze transactions. The accounting equation, Asset = Liabilities + Equity, is very useful in analyzing transactions. You have to keep in mind that this equation should always be balanced.
I have prepared a sample problem involving the preparation of a financial transaction worksheet. I hope with this problem you could have an idea how recording transactions work.
The answer will be:
If you got this correctly, you have proven your skills on accounting. Congratulations!
Great post! I work at an accounting firm in NYC and we always like to give the interns little problems like this just to keep them on their toes! It may sound trivial to give an intern, but we like to ensure they remember the ground work from their early days. Always good to remember your beginning to be successful!
ReplyDeleteThank you for your comment. It's nice to hear that someone got interested with my blog. I was previously connected with Ernst and Young Philippines and I had seen that there is really a necessity to have this simple problem on analyzing business transaction. As what my mentors always say, "you cannot solve the complex problems if you do not even know how to solve the basics." Hope to hear from you again soon. Thanks and Merry Christmas!
ReplyDeletethere is some problem, probably you forgot to credit the 50000 accounts payable on the right side of the worksheet in the owners equity. If not there balance is not possible.
ReplyDeletepost more problems please
ReplyDelete