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  • Debit & Credit

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    Sudhir Kumar Yadav
    37 views6 pages
    The document outlines key accounting concepts including: 1) The rules of debit and credit, where debit refers to the receiver and goes in for expenses, and credit refers to the giver and goes out for income. 2) The two bases of accounting - cash basis recognizes revenue/expenses when cash is received/paid, while accrual basis recognizes them when the transaction occurs. 3) Types of assets and liabilities in the basic accounting equation - assets equal liabilities plus stockholders' equity, with current/non-current assets and current/long term liabilities.

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    The document outlines key accounting concepts including: 1) The rules of debit and credit, where debit refers to the receiver and goes in for expenses, and credit refers to the giver and goes out for income. 2) The two bases of accounting - cash basis recognizes revenue/expenses when cash is received/paid, while accrual basis recognizes them when the transaction occurs. 3) Types of assets and liabilities in the basic accounting equation - assets equal liabilities plus stockholders' equity, with current/non-current assets and current/long term liabilities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    37 views6 pages

    Debit & Credit

    Uploaded by

    Sudhir Kumar Yadav
    The document outlines key accounting concepts including: 1) The rules of debit and credit, where debit refers to the receiver and goes in for expenses, and credit refers to the giver and goes out for income. 2) The two bases of accounting - cash basis recognizes revenue/expenses when cash is received/paid, while accrual basis recognizes them when the transaction occurs. 3) Types of assets and liabilities in the basic accounting equation - assets equal liabilities plus stockholders' equity, with current/non-current assets and current/long term liabilities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 6

    Rules of Debit V/s Credit

    DEBIT
    Receiver

    CREDIT
    Giver

    Goes in
    Expenses

    Goes Out
    Income

    Payment

    Receive

    BASIS OF ACCOUNTING

    Cash Basis
    A process of accounting

    Accrual Basis
    A process of accounting that recognizes the impact of transaction on the financial statements in the time period when revenues and expenses occur instead of when the company pays or receive cash

    where revenue and expenses


    recognition would occur when the company receives and disburses cash.

    ADJUSTMENT TO THE ACCOUNT

    Expiration

    of Unexpired Cost

    Recognitions (Earning) of Unearned Revenues Accrual of unrecorded Expenses Accrual of unrecorded Revenues

    BASIC ACCOUNTING EQUATION

    Assets (A) = Liabilities (L) + Stockholders' equity (SE) A = L+ SE SE= Paid up Capital + Retained Earning Retained earning = Accumulated Profit + Current year profit Dividend - Loss

    ASSETS
    Current Assets

    Non-current Assets

    Fixed Assets

    Investment

    Intangible Fixed Assets

    Tangible Fixed Assets

    Liabilities
    Current Liabilities

    Long Tern Liabilities

    Secured Current Liabilities

    Unsecured Current Liabilities

    Secured Long Tern Liabilities

    Unsecured Long Tern Liabilities

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