Question

On 1.1/20X0, you are hired as a manager for a company with a resource of 1 billion Vietnam Dong in cash (500 million from owner’s money and 500 millionfrom creditor). In January:

Company purchase goods which cost 300 million in cash and then re-sell with 400 million(received cash)

Borrow 200 million cash from bank and purchase a machine which)costs 300 million (paid by cash)

Record the above transactions in terms of changes in the elements of the accounting equation.

Answer 1

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