Question 1 The whole of financial accounting is based upon the very simple idea that, resources supplied by the owner of the business plus liabilities that must be settled at a future date must be equal to the resources in the business. It follows that the capital plus liabilities of the entity must be equal to assets of the entity expressed as: Capital + Liabilities - Assets (i.e. C+L-A). Using Microsoft excel, demonstrate the effects of the following transactions on the accounting equation, and prepare the resultant balance sheet as at 31" July, 2020, 1 July started business with cash 2 Sales on cash 4 Stock of materials paid by cash 5 Paid cash into bank 7 Withdrew cash for office use 8 Loan received by cash 10 Sales of goods received cheque 19 Cash sales 21 Debtor paid us by cash 30 Sales, received cheque 30,000 50,000 10,000 20,000 10,000 20,000 30,000 80,000 50,000 40,000