what is bookkeeping and accounting

Accounting and bookkeeping boring game they are just unnecessarily complicated registration procedures, conditions and procedures to learn how to use, perhaps because they never bothered to think, is something that many foreigners. On the contrary, accounting and bookkeeping, how much gain or loss arising from a viable business model, such as many of the criteria, and the search for what information is available, recording of transactions in a logical way so that you owed to others in a professional manner, or simply just to name a few obligations , so bring enough money to cover the economy.
Accounting is both personal and professional life, and these prejudices worth throwing something useful and want to listen to! Accounting is not something as complex as accidentally thought. E 'to get something, then, of course, to give each other a process that has a double aspect, and therefore on the basis of the basic concepts of accounting referred to as bank and credit terms. Maybe Newtonâ € ™ s Laws of reminds me of that action and reaction are always equal and opposite.
Basically, the accounting operation accounting equation (i) twice, and (ii) accounting.
(I) is a typical accounting equation:Assets = Liabilities + Shareholders' Equity
(II) double-entry bookkeeping view:This system is guaranteed by a perfect balance of the accounting equation.
As such, the use of such records for later analysis, interpretation and reporting of accounts in addition to facilitate the preparation of the budget to identify and re-encoding, such as financial transactions in the accounting system that is no longer appropriate to summarize the set.
Now letâ € ™ s accounting equation shown above, after a while, 'Go to, go, and their practical consequences:
Goods assets (including what is owed to others), has this time. The difference between the two is what is owed Liabilities Other capital (if an individual) submitted by you or shareholders (in case of a limited liability company) accumulated roomates, plus or minus includes profit or loss is called dividend. I paid only if none of the capital introduced and passed in this way can be a mistake not. And so it is called capital.
Roomates pay you $ 25,000 to $ 40,000 you can buy a car out of the snow Say distributed (or personal savings), and the rest is not a stranger to get a loan amount of $ 15,000.
The accounting equation instead of these values, we ï ¿½ ï ¿½ "
Assets (asset) = liabilities (what you owe to others) + capital (equity / personal savings)$ 40,000 = $ 15,000 + $ 25,000
Together the two loans ($ 15,000 + $ 25,000) $ 40,000 $ 40,000 Total debt = see added.
Only two general ledger accounts and other accounts and operations of the distribution of goods that require more complex operations. On one side of the equation is a double entry or a series of charges each consisting of one or the other side of the equation is equal to the number of credits.
The following two examples, the, how they synchronize the double-entry accounting equation and you can see the two concepts:
(I) the cash repayment of a debt, will be paid $ 50.While money is a creditor's liability account, is represented.Creditor (fee) 50 = $ 50 cash account (credit) €
Owe you a debt of $ 75 a is (II) receipt.While the debt represented by the debtor of his account, the money will takeCash (calculated) = $ 75 debtors (receivables) 75 €
So far Newtonâ € ™ s laws, the concept of double-entry bookkeeping accounting have been removed from the show. At this point, you add something to one side of an equation, you must do the same for the other side of the equation where I was told to make it back up to grade 8 algebra class or want you back? Itâ € ™ s fair enough ï ¿½ ï ¿½ "isnâ € ™ t? That's exactly what a lot of equity and the balance we want to do is double-entry bookkeeping making.
An unusual or common sense, the challenge of double-entry bookkeeping as a fair and reasonable is a very complex thing. Providing easy, logical to think the concept of double-entry bookkeeping, or who he is and who or what is what every one can understand the application process and the framing of the appropriate entries in the equation d 'agreement, the two sides (balance), and is consistent with common sense.