Exercise 3

Welcome to Exercise 3. This module brings to life the absolute bedrock of corporate accounting: the fundamental accounting equation. Every single asset a company owns must be perfectly mirrored by a source of funding, whether that is debt or equity. This balance is the magic of double-entry bookkeeping.

Let's break down the business transactions in our scenario. First, a new startup secures a 50 thousand PLN bank loan. Instantly, a liability is created on the right side of the balance sheet, and a matching 50 thousand PLN in cash appears on the left side under assets.

Next, management decides to put that capital to work. They purchase 30 thousand PLN worth of production machinery, paying for it with the cash they just borrowed. Notice that this second move does not change the total size of the company's balance sheet. It merely swaps one asset, liquid cash, for another, physical machinery.

Your challenge here is to calculate and input the final balances. After buying the equipment, how much liquidity is actually left in the bank account? What is the book value of the new machinery? And finally, what does the right side of the balance sheet look like, keeping in mind that no founder equity has been injected yet, so equity remains at zero? Fill in the fields and check your work. Ultimately, this trains you to intuitively see that every dollar of corporate resources has a specific financial origin. Assets must always equal liabilities plus equity.