Tom \& Dick go into business together as partnership, selling computer software through the internet. On January 1 , Tom put in $6,000 as capital and Dick put in $5,000 as capital. The capital contribution goes into the Tom\&Dick account at their local bank. They buy computer equipment for $10,000 (paid by cheque) and set up for business in Dick's dad's basement. At this point the accounting equation is assets: \$10,000; liabilities: \$0; equity: $10,000 assets: $2,000; liabilities: $10,000; equity: $8,000