Accounting presentation
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Salman Ali presented on accounting transactions and their analysis. Key points included: 1) Accounting transactions record money coming into and going out of a business, such as investments, revenues, withdrawals, and normal expenses. Transactions are recorded using a five step approach and double entry system. 2) Accountants classify transactions as debits or credits based on whether the entry is on the left or right side of the account. 3) The accounting equation balances assets with liabilities and owners' equity. A "debit" increases expenses, assets, or drawings while a "credit" increases liabilities, income, or capital.
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Accounting presentation
- 1. Class Presentation by: Salman Ali Topics Recording of Accounting Transactions Analysis of Accounting Transactions /1
- 2. Accounting Transactions Definition In businesses, money comes in and goes out. Such as investments, revenues, drawings or withdrawals, and normal expenses. In accounting, these occurrences are referred as transactions. Mainly transactions are of two types, Internal (within company, e.g. Payroll) external (outside the company)
- 3. Recording of Accounting Transactions Accounting adopts five steps approach • Invoices Transaction Document • Delivery Orders etc • Daily Register General Journal Day to Day Activity • Record all transactions regardless of their nature Balance • Register of Accounts Sheet, Income General Ledger • Use double entry system (Debit / Credit) Statement, Cash Flow Statement, Owners Equity Statement • Total of all debits & all credits of general ledger double entry Trial transaction should be equal, Trial Balance prove this Balance Done • at the End of Accounting Period From trial balance transaction are posted in to specific format Financial of reports which are called financial statements Statements
- 4. Cash Analysis of Accounting Transactions Dr. Cr. Accountants classify transactions Debit (abbreviated Dr.) to denote an entry on the left side of any account Credit (abbreviated Cr.) to denote an entry on the right side of any account Accounting Equation Assets = Liabilities + Owners' Equity Dead Clic Rule Debit when expense / asset / drawing increases Credit when liability / income / capital increases
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