ACCOUNTING
REVISION
GRADE 9-1ST YEAR
, MISS BALLET PTY (LTD)
Jenna from Miss Ballet Pty (Ltd) just opened her company and will need your guidance on how the finances
company works.
She needs your help in understanding what accounting is and where to start.
You start of by explaining to her That Accounting in essence is an equation
Assets=Liabilities +Owners equity OR??
ASSETS= LIABILITIES +OWNERS
EQUITY
, WHAT IS ACCOUNTING
• In accounting, an account is a descriptive storage unit used to collect and store information of
similar nature.
• Can you give me an example od an account??
• For example, "Cash".
• Cash is an account that stores all transactions that involve cash receipts and cash payments. All
receipts are recorded as increases in "Cash" and all payments are recorded as deductions in th
same account.
• Another example, "Building". Suppose a company acquires a building and pays in cash. That
transaction would be recorded in the "Building" account for the acquisition of the building and
reduction in the "Cash" account for the payment made.
• Now, let's take a look at the accounting elements.
REVISION
GRADE 9-1ST YEAR
, MISS BALLET PTY (LTD)
Jenna from Miss Ballet Pty (Ltd) just opened her company and will need your guidance on how the finances
company works.
She needs your help in understanding what accounting is and where to start.
You start of by explaining to her That Accounting in essence is an equation
Assets=Liabilities +Owners equity OR??
ASSETS= LIABILITIES +OWNERS
EQUITY
, WHAT IS ACCOUNTING
• In accounting, an account is a descriptive storage unit used to collect and store information of
similar nature.
• Can you give me an example od an account??
• For example, "Cash".
• Cash is an account that stores all transactions that involve cash receipts and cash payments. All
receipts are recorded as increases in "Cash" and all payments are recorded as deductions in th
same account.
• Another example, "Building". Suppose a company acquires a building and pays in cash. That
transaction would be recorded in the "Building" account for the acquisition of the building and
reduction in the "Cash" account for the payment made.
• Now, let's take a look at the accounting elements.
