BASICS OF ACCOUNTING
This document comprises of:
1. Accounting Definition.
2. Heads of accounts (with examples).
3.Rules of Debit and Credit.
4. Capital and revenue expenditure.
5.Accounting Equation.
, ACCOUNTING:
Accounting is the art of recording,
classifying, and summarizing the transaction in a
significant manner.
HEADS OF ACCOUNTS:
There are 5 heads of accounts,
namely:
ASSEST:
An asset is a resource with economic value that an
individual, corporation or a country owns or controls
with the expectation that it will provide a future
benefit.
There are two types of assets:
1. NON-CURRENT ASSET:
Assets whose benefits will be realized over more
than one year and can’t easily be converted into
cash. Example: Land, building, Vehicle etc
This document comprises of:
1. Accounting Definition.
2. Heads of accounts (with examples).
3.Rules of Debit and Credit.
4. Capital and revenue expenditure.
5.Accounting Equation.
, ACCOUNTING:
Accounting is the art of recording,
classifying, and summarizing the transaction in a
significant manner.
HEADS OF ACCOUNTS:
There are 5 heads of accounts,
namely:
ASSEST:
An asset is a resource with economic value that an
individual, corporation or a country owns or controls
with the expectation that it will provide a future
benefit.
There are two types of assets:
1. NON-CURRENT ASSET:
Assets whose benefits will be realized over more
than one year and can’t easily be converted into
cash. Example: Land, building, Vehicle etc
