Simplified Accounting Concepts

Hello Guys, Today we discuss about Accounting Equation- Concept, Meaning and Formulas.  Accounting Equation  is the basis for Double Entry System of Book Keeping. Total assets of the business firm are provided by the lenders and the owners. Therefore, at any point of time, the total assets of a business are equal to its total liabilities. Liabilities or loans to the outsiders are known as "liabilities" but liability to the owners, in accounting is referred to as "capital". Accounting Equation We Learn- Meaning of Accounting Equation Transactions affecting two items Transactions affecting more than two items Meaning of Accounting Equation Accounting Equation also known as Balance Sheet Equation, which is a mathematical expression which shows the assets and liabilities of the firm are equal, here liabilities include owner's equity and claims from outsiders. It means total claims (claim of outsiders and claim of proprietors) will always equal to the total assets of

Hey Guys, so today we will study the most important and interesting topic of  Accounts. Golden Rules of Accounting- Rules of Debit and Credit which is the base of accounts and the language of accounts. Under double entry system of Book keeping each transactions has two aspects. One is called debit and another is credit where, debit records incoming or receiving aspect and credit records outgoing or giving aspect. Table Of Contents Meaning of an Account Account is a summarised record of transactions at one place related to the particular head. Account is prepared for sort and store the transactions. Each individual account is stored in the general ledger and used to prepare the financial statements at the end of the accounting period. An Account shows specific assets, liability, revenues, assets, equity.  An Account is divided into two parts which is known as Debit and Credit, Debit and Credit are two opposing terms.  Dr . is used for Debit and  Cr.  stands for Credit,

In this tutorial we get to know about Journals and Ledgers which is a very important part of accounting. We prepare Journals and Ledgers to keep track of our company's transactions. Recording of transactions in a systematic manner comes under the process of Bookkeeping. So, lets find out what are these topics Journals and Ledgers meant to be. Table Of Contents Meaning of Journal Under the system of Double Entry Bookkeeping transactions are primarily recorded in the Journal, Journal is the primary book of accounts in which transactions are first recorded in the books of accounts in a chronological order(dates as they occur). In other words, a journal is a detailed account which records all the financial transactions of a business in a chronological order, it is a book of original entry in which transactions are written before they are posted in a ledger. Journal helps to review the effect of the transaction on the business which is shown for each trans