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Principles of Accounting (DAC1013) : Chapter 3: Business Transaction Recording Process (3 Week)
Principles of Accounting (DAC1013) : Chapter 3: Business Transaction Recording Process (3 Week)
(DAC1013)
Non-Current Current
Liabilities Liabilities
●
Requires owner to settle the ●
Requires owner to settle the
amount owed in long-term period.
●
For eg: Loan from banks,
amount owed within a year.
Mortgage loan.
●
For eg: Creditors
Exercise 2
• For each of the items below, tick () into the right class of account. For eg...
ASSETS LIABILITIES
Items
Non Current Non Current
Current Current
Cash
Loan from Bank
Office Equipment
Creditor
Motor Van
Bank Overdraft
Goodwill
Bank
In business transactions..
(EXPAND MORE...)
• Therefore, from the expanded accounting equation, there are five (5) main
classes of accounts:
Liabilitie
Assets s
Expense
Capital s
3-4-1: Revenues
In business transactions,
Assets
Expenses
Capital Liabilities
Revenue
s