Transactions Analysis – Finance For Non-Financial Personnel

In the previous lecture we saw the General
Journal and the General Ledger and also   looked at how the transaction entries are 
made in both the book of accounts. Please   note here that nowadays many companies 
record their transactions electronically,   using a computer and some software, but remember 
that the basics remain same, they don't change.  In this lecture we will continue to look at 
some more transactions and also see how the   accounting equation maintains its balance? By now 
you must have memorized the accounting equation"   Assets Equals Liabilities plus Equity, here we 
are going to look at some of the transactions,   and see how they impact the accounting equation. 
As you can see we have Assets on the left side   then we have Liabilities and the Equity on 
the right side, and then we have also divided   the assets into the different types of assets, 
these are just some examples, you know that there   are many different types of assets, tangible 
and intangible assets, but here we are just   looking at cash supplies and equipment under 
the assets, then under liabilities, we have two   different types of liabilities mentioned here, 
accounts payable and notes payable, you can have   more liabilities and under equity we have owners 
capital, owners withdrawals, revenues and expenses….

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