Mind Map Gallery Accounting Concept Map
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Accounting Concept Map
An interesting timeline-based concept map about accounting. For chapter 1 & 2 Created by Brigid Cheong.
Edited at 2021-06-26 15:12:03
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- Outline
ACCOUNTING
Processof analysing, recording,summarising,reporting,interpreting finance infomation of business
Organisation Business
Makes decisions & Take Risks
Sole Prorietorship
Partnership
Share decision making and take risks
Company (Limited)
Shareholders
External
Investors
Creditors
Tax Authorities
Internal
Managers
Owners
Employees
Types Of Business
Service
Consulting
Trading
Buy low and Sells highest
Inventory
Buy for Resale
Manufacturing
Products
Double Entry System
Accounts
General Ledger
Chart of accounts
Increase / Decrease in each item of equation
Rules
ASSETS = LIABILITIES + OWNER"S EQUITY
= LIABILITIES + SHAREHOLDERS'EQUITY
Owner's
Claim on net assest of business
REVENUE
Increase in Credit
Ordinary Capital Share
Right Column
Decrease in Debit
Left Column
Cash
Debit Owned
Bank Loan
Account Payable
On Credit
Recording of Accounting
Historical Cost
Actual paid Amount
To maintain operation of the Company
From source documents
At least 2 accounts
1. Debit
2.Credit
Monetary
Quantifying in $$
Entity
1.Owner
2.Business
Transactions
1.Separate
2. Recorded
ACCOUNTING CYCLE
Step 1 :
Analysis of Business transaction
5 Steps
Accounts Affect
Category
Decrease / Increase of Account
Rules of Dr & Cr
Amount
Step 2:
Recording transaction in General Journal
Step 3:
Posting journal entries to the General Ledger
Step 4:
Preparing in pre-trial closing balance
Ending balance of all accounts = General Ledger
Total debit = Total Credit
Step 5:
Preparing financial statement
Step 6:
Closing temporary account
Step 7:
Preparing the pre-closing trial balance
Closing at the end of accounting period
ASSETS
EXPENSES
+ DEBIT
- CREDIT
Properties of value owned by Business
Cash
Furniture
Office Equipment