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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