Sample
Summaries after sample
, Sole trader Debit and credit
Assets
• Only 1 person owns and runs the business. • Debit is entered on the left of a ledger account.
• Fixed/tangible assets - bought to run • Fully responsible for all debts and profits. • Credit is entered on the right of a ledger account.
and maintain the business. •
• Current assets – can be converted into
cash easily. Capital
• Money needed to start a business.
•
Liabilities
• Long-term/current liabilities - paid back
over a period longer than 12 months. Owner’s equity (OE)
•
Sample
Short-term/current liabilities – paid back
in less than 12 months.
T5: Accounting
concepts (A)
•
•
Total capital contribution the owner makes to
the business.
Income
•
Summaries after sample
Transactions
Takes place when money is exchanged
between the business and another party.
•
•
Current income – money earned for services
rendered.
Rent income – money earned when renting
out premises.
Losses
• When income is less than expenses. Expenses
• Payments made for goods/services required
Profit to run a business on a day-to-day basis.
• Difference between income and • Decrease the value of owner’s equity.
expenses when income is greater
than expenses.
GR8 ACC T1 Mind Map Study & Master Copyright © www.summariessa.co.za (DO NOT COPY)
Summaries after sample
, Sole trader Debit and credit
Assets
• Only 1 person owns and runs the business. • Debit is entered on the left of a ledger account.
• Fixed/tangible assets - bought to run • Fully responsible for all debts and profits. • Credit is entered on the right of a ledger account.
and maintain the business. •
• Current assets – can be converted into
cash easily. Capital
• Money needed to start a business.
•
Liabilities
• Long-term/current liabilities - paid back
over a period longer than 12 months. Owner’s equity (OE)
•
Sample
Short-term/current liabilities – paid back
in less than 12 months.
T5: Accounting
concepts (A)
•
•
Total capital contribution the owner makes to
the business.
Income
•
Summaries after sample
Transactions
Takes place when money is exchanged
between the business and another party.
•
•
Current income – money earned for services
rendered.
Rent income – money earned when renting
out premises.
Losses
• When income is less than expenses. Expenses
• Payments made for goods/services required
Profit to run a business on a day-to-day basis.
• Difference between income and • Decrease the value of owner’s equity.
expenses when income is greater
than expenses.
GR8 ACC T1 Mind Map Study & Master Copyright © www.summariessa.co.za (DO NOT COPY)
