- Uplb- Te: “Moan cial Accountfng a Accounting « Acaunltng fo 0 System tn ohtch oll , the nancial fwansacton axe weCorded (n * paopex and Systemalte way - jtuh 4 Th tsa axt of tent Fept nq vecedtnn, css and Summoaxig ing fn a Staion: raonhex fh tams of money ‘ron Sactfon s (wloed te fretel I Business entity: A buginess and the oronex Situld , be teded SePaxately as fox as thein sie ‘teansnctfons axe — : Gr The owner of a. business Teang 8100, 000 to his Grnpanee : 2 Money measurement Gnwpk: The transactions " tahen a business selle a Product to a Customex” expressed fr tems money. ate ¥ecoeded fn accounting 2 Dual | aspect | ‘Gophes The weexdlig of fansackion< S fn books of acounls with 2 aspects (destt § Caedth) Xb Putchasing &, New eouipment on Ceedtt sesulls th hcteasing the, Mtadstltfes of: the laces Caegoy to i) by fs, [yy 067 000 ‘& Going Gncesn Gnepe? A Business fe a @ntinutng. i i entexpotse and wail exist tos an indetit pated: # Er a stale —ousned Gmpany fs © tough finan dal etrtuatfons and fts Sbaugg ling te pay. fhe debts S» Ih Fives Gmpany to ths Creel P bn - \ | i 5 Gst Gnoopt : The fixed asseks ofa business“ ake | recorded on the basis & the» oxtginal Gst b Ear Eo baltng C8 pushased for $500,000 (8 wl Gntfrue fo appesx fr the beoks af that yore, |. twveSpecttve of U8 mosket Valve - Accounthg year Gntepts + Gash business. chooses Speetfic Hme pestod to Gonplele, a ydle of the: - adcounting process Br romnbhly 5 gory + Matching Gncepk + Expenses axe traurved te: help prodiice wevenve- | * The Expenses’ should be matched ty the Trevenve) | ., they help produce - : poy _ Ger TE Product pm [0/000 Sales fy Nav, the Gm t Pays them lo00 Cy Gommistion tn December , The [oo coorth of Commicgions axe past of the doy stitemant along “bsth dey product Saks & Lojoo0I Realéscitfon Gncepls : Actreding bo this Gnapts, pobit (Ss we@qnised “only aden ft fs tatned «a» advance fee paid fe not Gneidexed a poo bi, untt| the goods 6 Servier Rove been delivered to the buyer | xr flip Kart ~=— Gutdeltnes used bo help Grmpanies defesrine how Grnpanies dedexeine to vecyd Cxtnin business tuansactions. that have not yet been fully > addwessed by accounting ctan dards | + Gnsenvatton 2 0 plicy of enttapnng posible “Res losses buct not futuse gains Ploy Sate eGosistenty : the use of fle Same accounting petals “feom one. petod of an accounting t next. So) fre Some Standade’, are applied to Glalats profit § pes “Matevfalttiy: all. inatextal (lems shoudl be reported | Properly tn the ¢ftranGal strtements, thems chase | boclusion 9 exdusion xesults axe signi Rost full dfsclosuxe? Hrat Suggests that a business should report all necessary (nfosmodfon th thaiy Hinanicl | Stailemerds jTo make BalteY decretons eef Accounting equation: descatbes that the . Total Assets = Uabtlibfes + Ownes!s equity Assets P anything that hag cussent © futuxe 4. 1 Clonomic Value to a. Ruciness Otones's cypetty ? The Curner's (nveetment. th ain “asset | after they deduct any liabilitfes . Ltabrlitfes + Lablity fe a logal obligation of-|an Indévidaad & 0 businere enttty. towards Ceedthas abieing out of Some tansactton ew | (3 Tos] re Curr payable, within fear bs tearm lads sy 4 pense & ™ Gratin gent fabu= Poyeble on seit & some event. * Real accounts * & & in @sh : funiture Being Tusniture . puschase “tox Gsh eo. Debtt Ge | shat’ Ges tn ushat’ goes aoa Ext ext Exe : right Gath —shaat-tam Building ACtounds eapipat ret fnvertraont I recievble thventsy Fradmaak tnventoy Machinery property licenses eutldery Vatent land equiprnest tnventowy Ftc God will trackinery lesb time pytents sh Rules fox mainbeintnge Books of ACounts ? _ All assets All paxthes Tangible § trtangible an § ed Rules” Rules Pebie what Gines by — Debrl the wecalieX (Gedet what goes aur Credit the givex Tromne q cpiies | | Det all erpersed losses —n Credtt at fr@mes § gains | \scaTousnale th acgunting > A detailed account thot xecxds all the 1 inanctal transactions of a business to be used ‘Se the fire veGnale of acounls ove the Eansher otrfsemadion ty other otftcial - | Scouinttna reGedss such a% the genesal ledger’ Rules > Debep f focrenseg assets 4 expen Seg : | "dL decreases Lio. btlittes ¢ wevenUeg, {7 = Coeded # frcrea ses, lib tletfes §.\"revenves + decreases assets” G expenses. Grenake) qjousral cheb Date | an * Debt | ceeded 2015 UovZ0 Gx expense 0/000 | 1 Bevenue . Hojoeg om | hg st | |over a Perfod of fome- Gar Ger yor. 3 Docusnenting changes to ascets » ba brlettes , equity 1 expenses and revenue. Asset led fo aCcountt 3 A portion of a Grpany't accunling wecoeds that details the Jounol enbfes velating only je the asset sectfon ‘of the balance ees * Petal Ballance A Book Keeping wosksheek ty which the Ce % all Iedgew are Gmptled nto debrt { Crest, XGount Glumn- totale. that ave: eye - Cohy Se? omission Ob exrnss | | | Poxt{eloss | Debtts | Ceedets I Shore wprtal = 20000 Machinery 15000 Debtors [2600 Ucpenses f Sell 3000 , Gank (pen Lore Toei | 30,000 30,000Double eb _accourtng- a Gocept of Book Rept and accountng oan Steleg that every ffrancia) transaction has ep anc _opporite effects th’ at least’ two dhe Alcunts, i ouble entey Keeping ] Gscerol“hdges.14 Zo] lo,000 t . lopoos | Yol | / > Both stds (oobtt § cocdet) showld tally eto po foal acount hk The accounts cohich ake. prepared ak the. ud, : ort t the frontal ear are Glled ot thal accun ts > Goeist of S Types E | ® Tradtng acount © profit § loss accunb ® = Balance sheet - ' \Ftral Accavnt: # Tesdlng Accoun Account op postales [Amount | r Ow iF " fovbicadaas Around oF LE 2 — | B Peri Sood | see! |” | Basle f toeee To Puochaves [ Yoo o ay dosing stock 2000 a Dneckerpose _iceo | oe 4 Ts gross poofit moun : | “otal [2000 {2000 | * Stile rent of pyotfk £ loss * Pawtfulass Amount Pouticulaxs Ta mount ¥ Gx To thdtyect B500. | By Goss pate | none Co penseS by Tort pofit | 2500~ | By other’ fore Yooo Tete} 6000 6000 © Balone sheet * | Poattculess ( Amount [ pavitculoss | Amousb- abr Gites 7 Assets | + Gottal 19000 _[ Hered assets _| 17500 | = ee chet assets Soo o a | 3500 Sap maa an ef aoe 22500 |