A group of investors who have decided to invest 800,000 to start a company, Business Information System, BIS Ltd., deposits the investment funds to form the firm in the newly opened bank account of BIS Ltd. The bank will pay 5% on outstanding balances in this account.
The effect of this first operation on the balance sheet (accounting equation) is shown in the Accounting System > Group 3 > WorkSheets M1 and in the Exhibit below.
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