Show the effect of the transaction below on the accounting equation
3:the owner made a direct deposit of R50,000 as a capital contribution
The accounting equation is Assets = Liabilities + Owner's Equity.
Before the transaction:
Assets = Liabilities + Owner's Equity
Owner's Equity = Capital
After the transaction:
Assets are increased by R50,000
Owner's Equity (Capital) is increased by R50,000
Therefore, the effect of the transaction on the accounting equation is:
Assets = Liabilities + Owner's Equity
+ R50,000 = Liabilities + Owner's Equity
+ R50,000 = 0 + R50,000
This transaction increases both assets and owner's equity by R50,000.