About Me
- The Red Writter
- im Jaded..i create this blog to share my little knowledge about what i've been taken from my college life and my greatest frustration in life is to develop my own accounting software..
Thursday, September 13, 2012
How to earned $100 to 200$ in two weeks
I weird this thing so i want to share to anyone who's stay at home 24/7 in front of computer. This is a home based part time job. All you need are internet connection. For more info:
Thursday, February 16, 2012
The Fundamental Accounting Equation
Asset = Liabilities + Owners Equity
Assets is defined, the economic resources of the company, and include such items as Cash, Accounts Receivable, Inventories, Land, Building and Machinery.
Liabilities is defined, the obligation of the company arising in the course of business, and includes such items as Accounts Payable, Notes Payable, Loans Payable and mortgage.
Owners Equity is the residual or called net asset because it is equal to liabilities minus asset. Some accountants use Stock Holders Equity if it is a corporation and owners equity is for partnership and sole proprietor.
Example
1. Company ABC Inc., brought a machinery on cash Php 800,000.00 January 1, 2012
What would be the journal entry or how to record to the book of ABC company?
Dr. - Debit
Cr. - Credit
To record machinery
Dr. Machinery 800,000.00
Cr. Cash 800,000.00
In this type of transaction only asset here has works, were no affect on liabilities and owners equity so that we called this Exchange of Asset. Were asset is used and also asset in return.
Assets is defined, the economic resources of the company, and include such items as Cash, Accounts Receivable, Inventories, Land, Building and Machinery.
Liabilities is defined, the obligation of the company arising in the course of business, and includes such items as Accounts Payable, Notes Payable, Loans Payable and mortgage.
Owners Equity is the residual or called net asset because it is equal to liabilities minus asset. Some accountants use Stock Holders Equity if it is a corporation and owners equity is for partnership and sole proprietor.
Example
1. Company ABC Inc., brought a machinery on cash Php 800,000.00 January 1, 2012
What would be the journal entry or how to record to the book of ABC company?
Dr. - Debit
Cr. - Credit
To record machinery
Dr. Machinery 800,000.00
Cr. Cash 800,000.00
In this type of transaction only asset here has works, were no affect on liabilities and owners equity so that we called this Exchange of Asset. Were asset is used and also asset in return.
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