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      • Tx01. Loan
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      • Tx05. Purchase inventory
      • Tx06. Cash Sale COS
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      • Tx08. Credit Sale COS
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      • Tx11. Account received
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      • Tx15. Advertising
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Picture

Lesson 4: Assets and Obligations - The Duality

An entity has assets, and those assets are ascribed a value expressed as a monetary amount. For each asset that the entity claims, it has an obligation to an external party: the owner/s (Equity) and or the creditors (Liabilities). The Funding Butterfly summarises this relationship.

In the following video, 'Business Is All About Assets,' we explore the essential duality of accounting: for every asset there is an equivalent value claim on that asset. But what does that look like?

​[Duration 8:57]
Extenders
  1. Looking at the Funding Butterfly on pp24-25, and let’s say we wanted to start a business like this. The Assets will cost us (say) R500 000. Where can we get these funds from?
  2. Continuing on from #1, if we borrow R300 000, how much will the owners have to contribute?
  3. In the Sipho’s Shoes example, if the shop was robbed overnight and R40 000 of stock was stolen, how would the balance sheet return to balance - who would suffer the loss? The Lender (Ace Bank) or the Owner (Sipho)? Explain.

Resources
  1. Student Workbook - Lesson 4 [4.7MB] - download​
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  • Home
  • Color-Accounting-Bootcamp
    • Benefits
    • 0. Introduction
    • 1. Funding Butterfly
    • 2. BaSIS Framework
    • 3. Classic Tx - v6.0X >
      • Tx01. Loan
      • Tx02. Contributed equity
      • Tx03. Repay loan
      • Tx04. Purchase equipment
      • Tx05. Purchase inventory
      • Tx06. Cash Sale COS
      • Tx07. Window cleaner
      • Tx08. Credit Sale COS
      • Tx09. Shop cleaning
      • Tx10. Gift card
      • Tx11. Account received
      • Tx12. Prepaid Sale COS
      • Tx13. Prepaid advertising
      • Tx14. Depreciation
      • Tx15. Advertising
      • Tx16. Pay supplier
    • 3. Classic Tx PizzaBox >
      • Tx01. Loan
      • Tx02. Contributed equity
      • Tx03. Repay loan
      • Tx04. Purchase equipment
      • Tx05. Purchase inventory
      • Tx06. Cash Sale COS
      • Tx07. Window cleaner
      • Tx08. Credit Sale COS
      • Tx09. Shop cleaning
      • Tx10. Gift card
      • Tx11. Account received
      • Tx12. Prepaid Sale COS
      • Tx13. Prepaid advertising
      • Tx14. Depreciation
      • Tx15. Advertising
    • 4. Summary learnings
    • 5. Business narrative
    • 6. Extenders
  • Virtual Learning
  • Teachers
  • Store
  • More
    • SeanStuff
    • Color Accounting
    • Curriculum Approach >
      • Menu page
    • Support
    • Gallery
    • LMS plans
    • Contact Us
    • Newsletter
    • Legal notices >
      • IP Rights