It is important that you know the type of documents commonly used to record the occurrence of transactions (Can you think of any examples?). Some of them are:- Official receipts Normally you will get these when you make payment over the counter to the cashier ...
Remember in my previous post on the Balance Sheet? The Balance Sheet shows the “position” of an entity at a certain point in time. However, the Income Statement shows a different picture than the Balance Sheet – Income Statement or Profit and Loss...
As discussed in my earlier posts, the balance sheet shows the financial position of an entity. In addition to the example introduced earlier whereby the owner contributed $10,000 cash at bank as capital (please refer to my post titled Debits and Credits), t...
These two words are typical to the world of accounting and they relate to the Accounting Equation: – Assets = Liabilities + Owners’ Equity Under what we called double entry system in accounting, each transaction must be recorded TWO times. For ...