Stage
CMA Foundation
Begin with the fundamentals of accounting, law, business and cost concepts in a structured learning framework.
Cost & Management Accountancy (CMA)
CMA Foundation → CMA Intermediate → CMA Final
Structured online preparation for CMA aspirants, designed to build conceptual clarity and examination discipline through every stage.
ZELVU Education coaching fee. ICMAI registration, examination and statutory fees, where applicable, are separate.
Programme video
Cost and Management Accountancy — introduction
Listen to the shared platform introduction, then explore the learning topics and programme choices on this page. Each programme keeps its own scope, fee and access period.
CMA Foundation · Paper 2 · English · 5:42
Understanding the Accounting Equation — Lesson 1
Follow assets, liabilities and owner’s equity through eight business transactions, then work through two practice examples.
An introductory accounting lesson shared across the CMA Foundation, Intermediate and Final programme pages. It teaches the accounting equation. Review your selected programme for its wider curriculum and available lessons.
Jump to a chapter (36)
Use the worked examples below to review the accounting equation, each transaction and the practice answers.
Review the worked example and practice answers
Assets = Liabilities + Owner’s equity
The business is separate from its owner. This simplified sole-proprietor example ignores taxes, depreciation and interest. Owner’s equity includes contributions, profit or loss and drawings; it is not limited to the original investment.
| Transaction | Assets | Liabilities | Owner’s equity |
|---|---|---|---|
| 1. Owner contributes ₹1,00,000 cash | ₹1,00,000 | ₹0 | ₹1,00,000 |
| 2. Equipment bought for ₹30,000 cash | ₹1,00,000 | ₹0 | ₹1,00,000 |
| 3. Inventory bought on credit for ₹20,000 | ₹1,20,000 | ₹20,000 | ₹1,00,000 |
| 4. Bank loan of ₹40,000 received | ₹1,60,000 | ₹60,000 | ₹1,00,000 |
| 5. Supplier paid ₹10,000 | ₹1,50,000 | ₹50,000 | ₹1,00,000 |
| 6. Goods costing ₹10,000 sold for ₹18,000 cash | ₹1,58,000 | ₹50,000 | ₹1,08,000 |
| 7. Rent of ₹5,000 paid | ₹1,53,000 | ₹50,000 | ₹1,03,000 |
| 8. Owner withdraws ₹3,000 for personal use | ₹1,50,000 | ₹50,000 | ₹1,00,000 |
Reconcile the final balances
Cash ₹1,10,000 + equipment ₹30,000 + inventory ₹10,000 = assets ₹1,50,000.
Supplier payable ₹10,000 + bank loan ₹40,000 = liabilities ₹50,000.
Sales ₹18,000 − cost of goods sold ₹10,000 − rent ₹5,000 = net profit ₹3,000.
Contribution ₹1,00,000 + profit ₹3,000 − drawings ₹3,000 = closing equity ₹1,00,000.
₹1,50,000 = ₹50,000 + ₹1,00,000
Independent practice examples
1. Assets are ₹80,000 and liabilities are ₹25,000. Owner’s equity = ₹80,000 − ₹25,000 = ₹55,000.
2. That business buys ₹5,000 of inventory on credit. Assets become ₹85,000, liabilities become ₹30,000 and equity remains ₹55,000.
₹85,000 = ₹30,000 + ₹55,000
Borrowing is not revenue. Drawings and supplier repayments are not expenses. A cash movement alone does not determine profit.
Continue with your CMA programme
Stage
CMA Intermediate
Strengthen your understanding across core disciplines and build a disciplined preparation habit for the next stage.
Stage
CMA Final
Focus on integrated application, higher-level cost and management concepts and strategic exam readiness.
Core Programme Catalogue
CMA programmes designed to support steady progression and exam clarity.
Admissions Open
CMA Foundation
One-time full-course fee.
₹2,999 one time · 18 months course access
One-time full-course fee for the complete published access period. No automatic debit and no monthly renewal. Your saved progress is retained after access ends.
Admissions Open
CMA Intermediate Complete
One-time full-course fee.
₹7,999 one time · 18 months course access
One-time full-course fee for the complete published access period. No automatic debit and no monthly renewal. Your saved progress is retained after access ends.
Admissions Open
CMA Final Complete
One-time full-course fee.
₹9,999 one time · 18 months course access
One-time full-course fee for the complete published access period. No automatic debit and no monthly renewal. Your saved progress is retained after access ends.