Accounting 101 Help?!?

Question

I need help in analyzing Transactions

For example:

1. payment of debt owing to a creditor

values received- cancellation of amount owed

value parted with- cash

Question: How will you know what is the values received and parted with when you were given a situation just like this help!? Please Give me tips!

Answer 1

if this is all the information that you were given then you would not know what the value of debt paid was.

can you see on the balance sheet what the amount was that was owed prior to it being canceled?