Accounting Equation: Sold half goods at a loss
1. Initial Situation
- Goods Cost: $15,000
- Sold Half of Goods
- Loss on Sale: 10%
2. Calculate Loss Amount
- Loss Percentage: 10%
- Loss Amount = $15,000 * 10% = $1,500
3. Calculate Selling Price
- Selling Price = Cost Price - Loss Amount
- Selling Price = $15,000 - $1,500 = $13,500
4. Accounting Entries
- Initially, the Goods worth $15,000 were recorded in the Inventory account:
- Inventory (Asset) = $15,000
- Owner's Equity = $15,000
- After the sale, half of the goods were sold at a loss of $1,500:
- Cash (Asset) = $13,500
- Inventory (Asset) = $7,500
- Loss on Sale (Expense) = $1,500
- Owner's Equity = $15,000
5. Adjustment in Accounting Equation
- Initial Owner's Equity: $15,000
- Final Owner's Equity: $15,000
- Change in Assets:
- Inventory: $15,000 - $7,500 = $7,500
- Cash: $0 + $13,500 = $13,500
6. Conclusion
- The sale of half the goods at a loss of 10% resulted in a decrease in Inventory and an increase in Cash, leading to a change in the Accounting Equation while maintaining the balance.

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