Understand Accouting (Mechanical Approach)
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This presentation targeted anyone who would like to understand accounting. Accounting is rather big topic, and even worse, the foundation of accounting, i.e. the double bookkeeping system is very abstract, so often neglected. This presentation tries to address the gap, the missing link between the double bookkeeping concept and profit definition. The script is found at http://getthingsright.blogspot.com/2010/07/normal-0-7.html
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The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
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Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
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The Influence of Marketing Strategy and Market Competition on Business Perfor...
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Training my puppy and implementation in this story
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Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...
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Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
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3 Simple Steps To Buy Verified Payoneer Account In 2024
Understand Accouting (Mechanical Approach)
- 1. Understand Accounting From How to Why
- 3. History of Accounting Renaissance Yoshi pays $100 Receives $200 Paragraph: Formulation: 100 200 Abstraction: 200 – 100 =100 Math Account summa de arithmetica geometria proportioni et proportionalita By Luca Pacioli Picture Source : http://en.wikipedia.org/wiki/Luca_Pacioli
- 5. Account Origin (1) Ancient Rome (Account : Personal) Slave Master Investment Master Own Money Segregation ! Investment Asset Liability Asset Liability
- 6. Account Origin (2) Post – Industrial Revolution (Account : Impersonal) Equity Cash Factory Material Labour Process Product Sales Profit/Loss Finance Work In Progress Inventory Sales
- 7. Book Structure Account A Account B Ledger X Account C Account D Ledger Y Books Journal / Day Book (Diaries) Posting Posting
- 8. Journal / Day Book Posting To SL: Sales Ledger One Source to One Posting = Traceability !! Source Documents 100 SL 15 10004 15 C Knight 200 SL 21 10003 10 D Mike 100 SL 15 10002 5 C Knight 100 SL 15 10001 1 C Knight Amount $ Folio Invoice No 2010 August Sales Day Book (Page 10)
- 12. Five Accounts (Cycle) (Introduction to Financial Statements) Liability Equity 1 2 Expense Income 3 4 Profit Asset
- 13. Which Account ? (1) Liability Equity Expense Income Out In Stock Flow Asset
- 14. Which Account ? (2) - B/S P/L + Debit Credit Asset - + Debit Credit Expense - + Debit Credit Income - + Debit Credit Liability/Equity
- 15. Which Account ? (3) B/S P/L Asset Expense Income Liability/Equity • Account Payable • Borrowing • Capital, etc • Cash/Bank Account • Account Receivable • Lending • Land, etc • Salary • Purchase • Office Rent • Commission Paid • Interest Paid, etc • Sales • Commission Received • Interest Received, etc
- 16. Profit Calculation Start End Liability Asset Profit = - Income - Expense = Profit Income - Expense = Profit Income - Expense = Profit Voyage, Caravan (Before Industrial Revolution) On-Going (After Industrial Revolution)
- 20. Posting for Allocation (1) Cash Outflow Cash Inflow Accrual Deferral A B C D Depreciation Provision (Payables) Unbilled Income (Receivables) Unearned Income
- 21. Posting for Allocation (2) A C D B Income Asset Income Liability Inflow Expense Liability Expense Asset Outflow Accrual Deferral
- 22. Posting for Disclosure Asset Asset Income Expense Asset No Cash flow !! Market Value