Accounting Introduction
Accounting Introduction
● Financial Accounting
● Cost Accounting
● Management Accounting
Method 1
● Assets: Resources owned by a business which have economic value you can convert into
cash (e.g., land, equipment, cash, vehicles)
● Expenses: Costs that occur during business operations (e.g., wages, supplies)
3. Nominal Rule
Debit losses and expenses
credit incomes and profits
Furniture Purchased
Sell 5000
Cash 90,000+ goods 10,000+ furniture 5000= capital 1, 00,000+ Creditor 5,000
2000 goods drawn for personal use
Cash 90,000 + goods 8,000 + furniture 5,000 = capital 98,000 + creditor 5,000