SHORT NOTES

FINANCIAL
ACCOUNTIG
Najihah Abu Bakar
AGENDA
✓ Introduction to 5 Basic Accounting
✓ Types of Asset, Expenses, Equity, Liability and Revenue
IMPORTANT!!! 3

FIVE BASIC ACCOUNT

(AMOUNT DEBIT AND CREDIT SHOULD BE EQUAL)

ASSET EXPENSES EQUITY LIABILITY REVENUE

Items that valuable to

Cost incurred due to
purchase goods and
= Financial obligation Financial obligation
Income or profit
eared due to sales of
the business other bills that need to OWNERS to THIRD PARTY goods / other revenue
to pay received

Amount inflow (Increase): DEBIT Amount inflow (Increase): CREDIT

Amount outflow (Decrease): CREDIT Amount outflow (Decrease): DEBIT

 AMOUNT INCREASE DEBIT
4

ASSETS
NON CURRENT ASSETS (NCA) CURRENT ASSETS
Asset that have valuable to company more than 1 years. If we Assets valuable less than one year.
sell NCA, we will receive money.
• Closing inventory
• Cash in hand
TANGIBLE INTANGIBLE INVESTMENT • Bank
• Account receivable (Debtor)
Can be see andd touch Cannot touch physically Invest in other company • Accrual revenue
and receive interest • Prepaid expenses
• Motorvehicles (Van, • Software revenue
car, lorry, • Patent
motorcycles) • Brand • Investment
• Building • Fixed deposit
• Land
• Office equipment
• Furniture
• Fixture and fitting
AMOUNT INCREASE DEBIT

EXPENSES
Cost incurred to purchase stocks and pay bills

PURCHASE OTHERS EXPENSES

Cost incurred due to purchase Cost incurred because need to

goods from creditor or supplier. pay bills to support the business

The goods purchased will sell to • Electricity

customers to generate revenue. • Utiliies
• Rental
• Purchase/bought/buy goods • Interest expenses
by credit or cash will increase • Insurance
the purchase account
• Depreciation
• Increase in AFDD
Any return outward and discount
receive will decrease the
purchase.
AMOUNT INCREASE CREDIT
6

EQUITY
Financial obligation to the owner

Business and owners are two separate legal entity. Business and owner are different
person. Hence, any transaction between business and owner must be recorded.

• Equity of business increase when owner contribute his belonging to the

business. (Capital)

• Equity decrease when owner take business belonging for his personal use.
(Drawing)
 AMOUNT INCREASE CREDIT
7

LIABILITIES
Financial obligation to the third party of the business such as bankers,
shareholders, investors, account payable (WAJIB BAYAR BALIK IF ADA
HUTANG ATAUPUN PINJAMAN)

NON CURRENT LIABILITIES (NCL) CURRENT LIABILITIES

Financial obligation that need to pay more Financial obligation that need to pay
than one year within or less than one year

• Long term loan • Account payable

• Mortgage for property, land and equipment • Bank overdraft
• Accrued expenses
• Prepaid revenue
AMOUNT INCREASE CREDIT
8

REVENUE
Income or profit earned by company due to selling activities or any
rewards from third party

SALES OTHER REVENUES

• Activity involves selling • Income receive from other

products to the customers activites NOT FROM
• The product may sell by SALES.
credit or cash • Commission receive
• Sales will be affect or (reward)
decrease if there any sales • Interest receive (due to
return/return inward and investment activities)
discount allowed. • Rental receive
• Awards
• Get donation/sponsorship
THANK YOU