In previous chapters, we have studied how business transactions are recorded using T-accounts. These transactions can also be recorded as…
In accounting, nature of all five (5) types of accounts is predefined. These accounts are either debit or credit in…
In basics of accounting section, the chapter Accounts explained what an account is, but what is a T-Account? It is…
Double-entry accounting system is a method of accounting which is based on the principle that every business transaction has two…
Purpose of this section “Basics of Accounting” is to make you acquainted with the fundamentals of accounting and basic terminologies.…
Debits and credits are undoubtedly the most commonly used terms in accounting. But before we go into the details of…
In previous chapters of this section “Basics of accounting”, we have learnt that there are five (5) types/categories of accounts…
Income statement is a financial statement that shows an entity’s financial performance during a particular period of time. Owners are…
Balance sheet is a financial statement that shows an entity’s financial position at a particular point in time. By nature,…
Let’s recall the definition of accounting from chapter “Introduction to accounting”. Accounting is the process of recording business transactions in…