Principles of Accounts

1. Principles of Accounts Form Four

2. What is accountingThe uses to which data recorded by bookkeeping can be put for various purposes. • Recording accounting data(記錄) • Classifying and summarising(分類) • Communicating information(溝通) • The part of accounting that is concerned with recording data is often known as bookkeeping.

3. The Accounting Equation(會計等式) • Assets =Capital + Liabilities • Assets : 資產 • Capital : 資本 • Liabilities : 負債

4. The Accounting Equation(會計等式) • Assets =Capital + Liabilities • Assets • eg. machine, motor van, cash, furniture, equipment, fixtures and fittings, buildings, stock, debtor (應收帳) 債務人

5. The Accounting Equation(會計等式) • Assets =Capital + Liabilities • Liabilities • eg. loan from company, • bank loan • creditor (應付帳) 債權人

6. The Accounting Equation(會計等式) • Assets =Capital + Liabilities • Capital • Introduced by owner • Drawings • Drew by owner

7. The Accounting Equation(會計等式) • Assets =Capital + Liabilities • Exercise: • Loan from ABC Company= $150 • Motor car=$300 • Cash=$100 • Capital =?

8. Effect of transactions upon assets liabilities and capital • Buy goods貨物 on credit未付款 • ↑assets ↑liabilities • Paid loan by cheque • ↓liabilities ↓assets

9. Effect of transactions upon assets liabilities and capital • Ex. • Buy motor van by cash • Owner introduce cash into business