Introduction to accounting fundamentals Most easy way to learn
accounting
Basic Class notes for i.com students
1.Definition
Accounting is an art of systematic recording
summarizing,reporting,analyzing and maintaining the financial
transactions of business. The entire method of handling business financial
records is called accounting.
2.Accounting equation
Assets + Liabilities = owner's equity
3.Debit and Credit rules
Every transaction of entries have double effect.
Debit : left side of account in general ledger
Credit: right side of account in general ledger
4.Five head of accounts
Whole accounting basic to advance level based on these five important
accounts
, 1.Asset
2.Expense
3.Liability
4.Income
5.Owner's equity
Assets definition
Resources owned by a business those can be useful to earn money or
benefit in future
Example : cash,inventory,equipments
Expensive
Cost incurred in the process of earning income during the specified period
in business.
Example : salaries,utilities,advertisements
Liability definition
Money or obligations of business to give other party in future
accounting
Basic Class notes for i.com students
1.Definition
Accounting is an art of systematic recording
summarizing,reporting,analyzing and maintaining the financial
transactions of business. The entire method of handling business financial
records is called accounting.
2.Accounting equation
Assets + Liabilities = owner's equity
3.Debit and Credit rules
Every transaction of entries have double effect.
Debit : left side of account in general ledger
Credit: right side of account in general ledger
4.Five head of accounts
Whole accounting basic to advance level based on these five important
accounts
, 1.Asset
2.Expense
3.Liability
4.Income
5.Owner's equity
Assets definition
Resources owned by a business those can be useful to earn money or
benefit in future
Example : cash,inventory,equipments
Expensive
Cost incurred in the process of earning income during the specified period
in business.
Example : salaries,utilities,advertisements
Liability definition
Money or obligations of business to give other party in future
