Accounting Concept Map
389
3
6
An interesting timeline-based concept map about accounting.
For chapter 1 & 2
Created by Brigid Cheong.
For chapter 1 & 2
Created by Brigid Cheong.
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Outline



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

Service
Consulting
Trading
Buy low and Sells highest
Inventory
Buy for Resale
Manufacturing
Products


Accounts
General Ledger
Chart of accounts
Increase / Decrease in each item of equation
Rules
ASSETS = LIABILITIES + OWNER"S EQUITY
= LIABILITIES + SHAREHOLDERS'EQUITY

Claim on net assest of business
REVENUE
Increase in Credit
Ordinary Capital Share
Right Column
Decrease in Debit
Left Column

Debit Owned
Bank Loan
Account Payable
On Credit

Historical Cost
Actual paid Amount
To maintain operation of the Company
From source documents

1. Debit
2.Credit
Monetary
Quantifying in $$
Entity
1.Owner
2.Business

1.Separate
2. Recorded

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

Total debit = Total Credit
Step 5:
Preparing financial statement
Step 6:
Closing temporary account
Step 7:
Preparing the pre-closing trial balance



EXPENSES
+ DEBIT
- CREDIT
Properties of value owned by Business
Cash
Furniture
Office Equipment