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    Week 2 - Lesson 1 - Accounting Equation

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    taj qaiser
    IGCSE - Edexcel

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    © All Rights Reserved
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    Week 2 - Lesson 1 - Accounting Equation

    Uploaded by

    taj qaiser
    2 views26 pages
    IGCSE - Edexcel

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    © © All Rights Reserved

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    PPTX, PDF, TXT or read online from Scribd

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    IGCSE - Edexcel

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    2 views26 pages

    Week 2 - Lesson 1 - Accounting Equation

    Uploaded by

    taj qaiser
    IGCSE - Edexcel

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 26

    Basics of Accounting

    Topic: Accounting equation


    Curriculum Reference: The Accounting Environment, he Accounting Equation and Double Entry
    System, income statement

    Learning Objective: Understand the concept of assets,


    liabilities and owner’s equity in accounting sense.

    Success Criteria:
    I can Identify parts of accounting equation.
    I can List types of assets and liabilities.
    Explain the basic accounting terminology
    I can solve problems by applying accounting equation

    @ASPSDubai
    Critical Thinking

    What do you think are things needed to open up a


    business?
    Key Vocabulary
    Assets
    Liabilities
    Expenses
    Income

    @ASPSDubai
    Big Question/Hook

    As you come in and get settled, follow


    these instructions:

    Be in your Take out


    assigned your
    seat.. Starter Task
    chromebook
    https://www.liveworkshe
    /notebook. ets.com/w/en/accounts/
    705698
    Assessment Criteria including WAGOLL Exemplars

    Beginning Developing Good Very Good Excellent


    Teach and Model
    @ASPSDubai
    @ASPSDubai
    @ASPSDubai
    The basic elements
    The two basic elements of any organisation are
    what it owns and what it owes.

    What it owns are the organisation’s economic resources. These economic


    resources are used to help the organisation generate revenues. In accounting,
    these economic resources are called ASSETS.
    Examples of assets for an organisation are:
    • Cash
    • Inventory
    • Accounts Receivable
    • Land & Buildings
    • Motor Vehicle
    • Furniture & Equipment
    © Mary Low @ASPSDubai
    The basic elements – what
    it owes
    What it owes are the organisation’s sources of financing for the economic
    resources.

    The main source of financing usually comes from EQUITY. Equity indicates the amount of
    financing provided by owners of the organisation.

    Examples of equity for an organisation are:


    • Owner’s Equity / Proprietorship for a sole trader business
    • Partnership Funds for a partnership business
    • Shareholders Equity for a company business

    The next source of financing comes from debt. Debt is the result of the organisation
    purchasing goods, services or assets on credit. Debt also results from loan borrowings. Debt
    is given the term LIABILITIES.

    Examples of liabilities for an organisation are:


    • Accounts Payable
    • Loan Payable

    © Mary Low
    The accounting equation
    what it owns = what it owes

    Assets = Liabilities + Equity


    A Balance Sheet (Statement of Financial Position) shows that the
    assets of an organisation should equal to its liabilities plus equity.

    This is why the accounting equation is also called a balance sheet


    equation.

    © Mary Low @ASPSDubai


    Different versions of the accounting equation
    •The accounting equation can be expressed in a
    number of different ways:
    •Asset emphasis:
    •Assets = Liabilities + Equity
    •Liability emphasis:
    •Liabilities = Assets – Equity
    •Equity emphasis:
    •Equity = Assets - Liabilities
    © Mary Low @ASPSDubai
    Mid Plenary Peeling Method

    Success Criteria:
    ● I can identify assets, liabilities & owner’s equity.
    ● I can identify different versions of accounting
    equation.

    https://www.financestrategists.com/accounting/quiz/multiple-choice/accounting-equation/
    Question 1-5
    Main Task/Differentiated Task: (HA/MA &LA)
    Learning
    Skill-Collaboration/Communication
    Complete the work sheet by collaborating with
    your group.

    Success Criteria:
    ● I can identify different versions of accounting equation
    ● I can explain different type of assets and liabilities.
    Group One
    Group Two
    Plenary

    Success Criteria:
    ●I can show the effect of accounting
    transactions.
    Group Three
    Progress Check

    https://www.financestrategists.com/accounting/quiz/multiple-
    choice/accounting-equation/

    6-10 Questions
    Home Learning
    COMPLETE THE TABLE

    ASSETS LIABILITIES
    1 400,000 150,000
    2 ? 800,000
    3 3,000,000 ?
    4 4,200,000 896,000
    5 ? 523,000

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