Here are more examples to further illustrate how the accounting equation works. Liabilities are obligations that it must pay including things like lease payments merchant account fees accounts payable and any other debt service. Accounting Equation In A Business Plan Plan Projections Accounting Basics Accounting Bookkeeping Business What this accounting equation includes. . Assets are all of the things your company owns including property cash inventory accounts receivable and any equipment that will allow you to produce a future benefit. 800 iii Interest Received Rs. We present eight transactions to illustrate how a companys accounting equation stays in balance. Assets which are the resources owned. Thus a balance sheet has three sections. Assets Liabilities Capital. Q5 Prepare Accounting Equation from the following. 60000 ii Drawing made Rs. Assets liabilities and owners equity are the three components o