FINANCIAL ACCOUNTING - WEEK 2

Apuntes

[Diapositiva 1] Lecture Topic: Introduction to Financial Accounting - The Double Entry System Lecturer : Mr. Declan Faughey [Diapositiva 2] Introduction to Double Entry Accounting Introduction to Accounting The Accounting Equation and the Balance Sheet The Double Entry System for Assets, Liabilities and Capital The Asset of Stock The Double Entry System for Expenses and Revenues Balancing Off Double Entry Accounts The Trial Balance [Diapositiva 3] The Accounting Equation Asset: Property or a Financial Amount the business owns Liability: Property or a Financial Amount the business owes to somebody else Capital: The Owner’s investment in the business. We can think of Capital as the amount the business owes to the Owners. Balance Sheet: The summary at a point in time of the Assets, Liabilities and Capital. [Diapositiva 4] The Accounting Equation The resources in the business = The resources supplied by the owner(s) Assets = Capital Assets – Liabilities = Capital [Diapositiva 5] Mr A Balance Sheet as at 30 September 2024 € ASSETS Fixtures 5,500 Vehicles 5,700 Stock 8,800 Debtor 4,950 Cash at bank ...