In the world of business, education, banking, business and other types of business we are certainly familiar with accounting, as blogs that are sharing information or sharing information about accounting, I gave some information about the understanding of accounting, where the understanding of accounting or accounting definition is always changing to follow the changes and development of the business world.
Accounting term derived from English to an account which means taking into account or mempertangung accountable and Accountancy word that means the things that concerned with something that is done by the accountant (accountant)
This accounting definition contained in the accounting terminilogiy bulletin as follows:
Accounting: a set of knowledge and functions concerned with issues of procurement, approval, registration, classification and presentation of systematic information dapt reliable and efficient about the transactions and financial events that are required in the management and operation of a business unit and needed as a basis for preparing reports to be submitted to meet the financial and other accountability.
The following accounting definitions as contained in the statements of accounting principles board no 4 yr (1970) as follows:
Accounting is an activity of service provision, its function is memyediakan kuntitafif information about economic business units, particularly those of financial nature, which is expected to be useful in making economic decisions.
So the notion of accounting as to achieve the goal of financial information memyediakan business entity that is useful for decision making.
Friday, October 8, 2010
Learn Accounting Debit and Credit (Understanding the Concept With Illustration)
Often we learn accounting starts from Debit and Credit transactions without knowing what is going on the debit and credit, To understand the concept of debits and credits should be started from the illustrations of daily transactions to yourself.
To understand the concept of debits and credits, we have to do is:
1. First we must know that the transaction from the accounting involved only 5 (five) elements of the transaction, the assets (assets), liabilities (debts), Equity / Capital (capital), Revenue and Cost / Expense.
In understanding the meaning or definition of the five elements of the transaction, try to use his own terms if the proposed definition or opinion of experts in accounting theory quite confusing. For definitions of the five elements, I try to define in a simple definition of the five elements of accounting as follows:
Assets are all the wealth we possess, both to myself and the bills on the other hand, assets that we have to come from their own business or loan from another party does not include assets from the lease
The obligation is a commitment we pay to the other party as a result we have received loans
Capital is the investment or the giving of oneself or others to start a business or in order to increase business.
Revenue is received in the delivery of services or goods
Cost / expense is spending an asset or assets that will be issued in connection with the service that we received or expenditures for which we do business
2. Instill in us that in the accounting, each debit transaction to be followed by a credit transaction as an opponent
3. With a simple transaction that make the concept of debits and credits associated with the 5 (five) elements of accounting, as follows:
a. Example 1: Suppose there are receiving paychecks in January 2010 amounted to Rp 5.000.000, -
Based on the transaction, we try to think of what we receive? and why do we accept?
What we receive is money (cash) of Rp 5,000,000, -
Then find the money, including part of what is among the five elements of the above accounting
By using the accounting definition of the five elements above, we can conclude that money is part of the Assets or Property.
After that we must know why we receive the money?
The answer is: We accept cash, because we have been providing services so that we earn, By using the accounting definition of the five elements above, we can conclude that the income in these transactions are entered into the element of income.
In the example above transaction, we can state that "Assets" has the addition of money, on the other hand "Income" also increased because there are services we provide.
Once we know the elements of its accounting Now we try to specify the Debit and Credit for the above transaction.
In the transaction above, we already know there are two elements involved are the assets and revenues, of the two elements we try to determine where the debit and credit which ones?
In this note I will determine to debit is ASSET, thus recorded as a credit is REVENUES
Based on the transaction we can conclude as follows:
o Asset grow and grow revenue
o If assets grow then it will be noted on the DEBIT
o If the revenue increases it will be noted on the CREDIT
With the conclusion above, from now on if you want to learn the concept of debits and credits in accounting, try to instill in us that if the Assets Grow it will be noted on the debit and if the decrease will be noted on the credit. For income; if Revenue Increase will be recorded on the credit and when less will be recorded on the debit.
b. Example 2: Suppose we want to buy a vehicle valued at Rp 100,000,000, -, on credit.
Of these transactions can we imagine what we receive? and by what means we receive?
What we receive is the vehicle, and based on the five elements of accounting above we can conclude that the vehicle is part of the Asset
To have the vehicle we buy on credit, this means that we have a debt to be paid. Debt in the five elements of accounting above the entrance in groups of Liability
In this transaction example, we can state that "Assets" has the addition of a vehicle, on the other "obligations" are also increasing because there are debts to be paid as a result of vehicle loans.
Once we know the elements of its accounting Now we try to specify the Debit and Credit for the above transaction.
In the transaction above, we already know there are two elements involved are Assets and Liabilities, of the two elements we try to determine where the debit and credit which ones?
As specified in Example 1 above, that ASSET will be noted if the increase in the DEBIT, thus we must agree that if the increase should LIABILITIES noted adjacent CREDIT
For these transactions we can conclude as follows:
o Assets and Liabilities increases increases
o If assets grow then it will be noted on the DEBIT
o If the obligation to grow it will be noted on the CREDIT
With the conclusion of the above; from now when we've mengetahuai Increased liability will be recorded on the credit and when less will be recorded on the debit.
c. Example 3: for example, we will open a business in the field of computer rental, capital which we have just a single computer unit for Rp 10.000.000, -
Of these transactions can we imagine what we have to open the computer rental business?
Here can we explain that we have to run a computer rental business is a computer and accounting based on the five elements above we can conclude that the computer is part of the Asset
As already stated above that the computer used for business is owned by someone who opened the business, in other words the computer is in the form of capital
In this transaction example, we can state that "Assets" has the addition of a computer, on the other hand "Capital" also increased due to additional capital from the owner of a computer.
Once we know the elements of its accounting Now we try to specify the Debit and Credit for the above transaction.
In the transaction above, we already know there are two elements involved are Asset and Capital, from the two elements we try to determine where the debit and credit which ones?
As specified in Example 1 and Example 2 above, that ASSET will be noted if the increase in the DEBIT, thus we must agree that if the increase should be in CAPITAL next record CREDIT
For these transactions we can conclude as follows:
o Capital Asset grow and grow
o If the assets are increased then it will be noted on the DEBIT
o If the capital increase will be recorded on the CREDIT
With the conclusion above, from now on we've mengetahuai if the Capital Increase will be recorded on the credit and when less will be recorded on the debit.
d. Example 4: for example, to go to work we need the fare for public transport, say of Rp 5,000, - per day
From this transaction we can conclude that to go to work we need to spend money on public transport fare of Rp 5,000, - this means if we use public transport then there is the additional burden / costs
In relation to any charges / fees should we spend on public transport, then there is cash / money should be spent Rp 5,000, -
From this transaction can we stated that the expenses / costs would increase by Rp 5.000, - as a result of the use of public transport services, on the other hand cash / money would be reduced by Rp 5.000, - which is used for payment of public transport services
Expenses / Cost of public transport services into groups of expenses / costs, while cash / money into asset groups
Once we know the elements of its accounting Now we try to specify the Debit and Credit for the above transaction.
In the transaction above, we already know there are two elements involved are Assets and Expenses / Cost, of the two elements we try to determine where the debit and credit which ones?
As is well known in example 1, example 2 and example 3 above, that if the reduced ASSET will be noted on the CREDIT, thus we must agree that EXPENSE / COST if the increase should be noted on the DEBIT
For these transactions we can conclude as follows:
o Asset reduced and expenses / costs increase
o If the asset is reduced it will be noted on the CREDIT
o If the Load / Fee increases will be recorded next DEBIT
With the conclusion above, from now on we've mengetahuai when the Load / Fee Increase will be recorded on the DEBIT and if reduced will be noted on the CREDIT.
Of the four examples above accounting transactions can be concluded generally as follows:
- ASSET if the increase will be recorded on the debit and if the decrease will be noted on the credit
- REVENUES if the increase will be recorded on the Credit and if it decreases will be recorded on the Debit
- LIABILITIES if the increase will be noted on the Credits and if reduced will be recorded on the Debit
- CAPITAL if the increase will be recorded on the Credit and if it decreases will be recorded on the Debit
- CHARGES / FEES when increases will be recorded on the Debit dasn if reduced will be recorded on the Cr
To understand the concept of debits and credits, we have to do is:
1. First we must know that the transaction from the accounting involved only 5 (five) elements of the transaction, the assets (assets), liabilities (debts), Equity / Capital (capital), Revenue and Cost / Expense.
In understanding the meaning or definition of the five elements of the transaction, try to use his own terms if the proposed definition or opinion of experts in accounting theory quite confusing. For definitions of the five elements, I try to define in a simple definition of the five elements of accounting as follows:
Assets are all the wealth we possess, both to myself and the bills on the other hand, assets that we have to come from their own business or loan from another party does not include assets from the lease
The obligation is a commitment we pay to the other party as a result we have received loans
Capital is the investment or the giving of oneself or others to start a business or in order to increase business.
Revenue is received in the delivery of services or goods
Cost / expense is spending an asset or assets that will be issued in connection with the service that we received or expenditures for which we do business
2. Instill in us that in the accounting, each debit transaction to be followed by a credit transaction as an opponent
3. With a simple transaction that make the concept of debits and credits associated with the 5 (five) elements of accounting, as follows:
a. Example 1: Suppose there are receiving paychecks in January 2010 amounted to Rp 5.000.000, -
Based on the transaction, we try to think of what we receive? and why do we accept?
What we receive is money (cash) of Rp 5,000,000, -
Then find the money, including part of what is among the five elements of the above accounting
By using the accounting definition of the five elements above, we can conclude that money is part of the Assets or Property.
After that we must know why we receive the money?
The answer is: We accept cash, because we have been providing services so that we earn, By using the accounting definition of the five elements above, we can conclude that the income in these transactions are entered into the element of income.
In the example above transaction, we can state that "Assets" has the addition of money, on the other hand "Income" also increased because there are services we provide.
Once we know the elements of its accounting Now we try to specify the Debit and Credit for the above transaction.
In the transaction above, we already know there are two elements involved are the assets and revenues, of the two elements we try to determine where the debit and credit which ones?
In this note I will determine to debit is ASSET, thus recorded as a credit is REVENUES
Based on the transaction we can conclude as follows:
o Asset grow and grow revenue
o If assets grow then it will be noted on the DEBIT
o If the revenue increases it will be noted on the CREDIT
With the conclusion above, from now on if you want to learn the concept of debits and credits in accounting, try to instill in us that if the Assets Grow it will be noted on the debit and if the decrease will be noted on the credit. For income; if Revenue Increase will be recorded on the credit and when less will be recorded on the debit.
b. Example 2: Suppose we want to buy a vehicle valued at Rp 100,000,000, -, on credit.
Of these transactions can we imagine what we receive? and by what means we receive?
What we receive is the vehicle, and based on the five elements of accounting above we can conclude that the vehicle is part of the Asset
To have the vehicle we buy on credit, this means that we have a debt to be paid. Debt in the five elements of accounting above the entrance in groups of Liability
In this transaction example, we can state that "Assets" has the addition of a vehicle, on the other "obligations" are also increasing because there are debts to be paid as a result of vehicle loans.
Once we know the elements of its accounting Now we try to specify the Debit and Credit for the above transaction.
In the transaction above, we already know there are two elements involved are Assets and Liabilities, of the two elements we try to determine where the debit and credit which ones?
As specified in Example 1 above, that ASSET will be noted if the increase in the DEBIT, thus we must agree that if the increase should LIABILITIES noted adjacent CREDIT
For these transactions we can conclude as follows:
o Assets and Liabilities increases increases
o If assets grow then it will be noted on the DEBIT
o If the obligation to grow it will be noted on the CREDIT
With the conclusion of the above; from now when we've mengetahuai Increased liability will be recorded on the credit and when less will be recorded on the debit.
c. Example 3: for example, we will open a business in the field of computer rental, capital which we have just a single computer unit for Rp 10.000.000, -
Of these transactions can we imagine what we have to open the computer rental business?
Here can we explain that we have to run a computer rental business is a computer and accounting based on the five elements above we can conclude that the computer is part of the Asset
As already stated above that the computer used for business is owned by someone who opened the business, in other words the computer is in the form of capital
In this transaction example, we can state that "Assets" has the addition of a computer, on the other hand "Capital" also increased due to additional capital from the owner of a computer.
Once we know the elements of its accounting Now we try to specify the Debit and Credit for the above transaction.
In the transaction above, we already know there are two elements involved are Asset and Capital, from the two elements we try to determine where the debit and credit which ones?
As specified in Example 1 and Example 2 above, that ASSET will be noted if the increase in the DEBIT, thus we must agree that if the increase should be in CAPITAL next record CREDIT
For these transactions we can conclude as follows:
o Capital Asset grow and grow
o If the assets are increased then it will be noted on the DEBIT
o If the capital increase will be recorded on the CREDIT
With the conclusion above, from now on we've mengetahuai if the Capital Increase will be recorded on the credit and when less will be recorded on the debit.
d. Example 4: for example, to go to work we need the fare for public transport, say of Rp 5,000, - per day
From this transaction we can conclude that to go to work we need to spend money on public transport fare of Rp 5,000, - this means if we use public transport then there is the additional burden / costs
In relation to any charges / fees should we spend on public transport, then there is cash / money should be spent Rp 5,000, -
From this transaction can we stated that the expenses / costs would increase by Rp 5.000, - as a result of the use of public transport services, on the other hand cash / money would be reduced by Rp 5.000, - which is used for payment of public transport services
Expenses / Cost of public transport services into groups of expenses / costs, while cash / money into asset groups
Once we know the elements of its accounting Now we try to specify the Debit and Credit for the above transaction.
In the transaction above, we already know there are two elements involved are Assets and Expenses / Cost, of the two elements we try to determine where the debit and credit which ones?
As is well known in example 1, example 2 and example 3 above, that if the reduced ASSET will be noted on the CREDIT, thus we must agree that EXPENSE / COST if the increase should be noted on the DEBIT
For these transactions we can conclude as follows:
o Asset reduced and expenses / costs increase
o If the asset is reduced it will be noted on the CREDIT
o If the Load / Fee increases will be recorded next DEBIT
With the conclusion above, from now on we've mengetahuai when the Load / Fee Increase will be recorded on the DEBIT and if reduced will be noted on the CREDIT.
Of the four examples above accounting transactions can be concluded generally as follows:
- ASSET if the increase will be recorded on the debit and if the decrease will be noted on the credit
- REVENUES if the increase will be recorded on the Credit and if it decreases will be recorded on the Debit
- LIABILITIES if the increase will be noted on the Credits and if reduced will be recorded on the Debit
- CAPITAL if the increase will be recorded on the Credit and if it decreases will be recorded on the Debit
- CHARGES / FEES when increases will be recorded on the Debit dasn if reduced will be recorded on the Cr
Understanding the Accounting Equation (Simplified Case Daily)
In a study of accounting is very important to know the accounting equation, accounting equation is very useful in the preparation of financial statements. To study the accounting equation is try you see Learning Accounting Debit and Credit on http://kalmet.blogspot.com Blog
By using daily transactions and simple as described in Learning Accounting Debit and Credit, then we can learn how to record transactions on the debit side and credit side. Based on lessons learned in the notes to Learning Accounting Debit and Credit then can we shape the accounting equation as follows:
1. Look at the positive positions in each of the elements of accounting as discussed in Accounting Debit and Credit Education, namely:
- Assets increased debit positioned
- Obligation to grow in the position of credits
- Equities / Capital increase in the position of credits
- Revenue grew in the position of credits
- Cost / Expense increases are on the debit
2. By looking at the positive signs we may form the accounting equation, the accounting elements of the debit side the same as the credit side of the accounting elements, with the following equation:
ASSET PRICES = CAPITAL REVENUE OBLIGATIONS
3. In accounting, Assets, Liabilities and Capital is a component of the Balance Sheet, Income and expenses while the group of Income (Loss), above this, the accounting equation can be simplified to
- Group Balance Sheet, the accounting equation as follows:
ASSETS = LIABILITIES CAPITAL
In this equation can be concluded that the assets we have acquired from the loan and / or from capital
- Group Profit (Loss) with the accounting equation as follows:
EARNINGS (LOSS) = REVENUES - COSTS
In this equation can be concluded that if the income is greater than the costs, the difference is recognized as income, if income is less than the cost, the difference will be recognized as a Loss
4. Relationship Balance Sheet with Income (Loss)
Consolidated profit (loss) is a transaction made for a certain period and the results of income (loss) will affect the capital owned.
This means if we have gain the capital that we have will increase by profits derived, whereas if it will automatically lose our capital would be reduced by losses. Thus the accounting equation for capital is as follows
CAPITAL = CAPITAL INCOME (LOSS)
Conclusion:
Accounting equation Gain (Loss) are as follows:
EARNINGS (LOSS) = REVENUES - COSTS
Accounting equation for capital is as follows:
CAPITAL = CAPITAL INCOME (LOSS)
Accounting for the balance equation is as follows:
ASSETS = LIABILITIES CAPITAL
By using daily transactions and simple as described in Learning Accounting Debit and Credit, then we can learn how to record transactions on the debit side and credit side. Based on lessons learned in the notes to Learning Accounting Debit and Credit then can we shape the accounting equation as follows:
1. Look at the positive positions in each of the elements of accounting as discussed in Accounting Debit and Credit Education, namely:
- Assets increased debit positioned
- Obligation to grow in the position of credits
- Equities / Capital increase in the position of credits
- Revenue grew in the position of credits
- Cost / Expense increases are on the debit
2. By looking at the positive signs we may form the accounting equation, the accounting elements of the debit side the same as the credit side of the accounting elements, with the following equation:
ASSET PRICES = CAPITAL REVENUE OBLIGATIONS
3. In accounting, Assets, Liabilities and Capital is a component of the Balance Sheet, Income and expenses while the group of Income (Loss), above this, the accounting equation can be simplified to
- Group Balance Sheet, the accounting equation as follows:
ASSETS = LIABILITIES CAPITAL
In this equation can be concluded that the assets we have acquired from the loan and / or from capital
- Group Profit (Loss) with the accounting equation as follows:
EARNINGS (LOSS) = REVENUES - COSTS
In this equation can be concluded that if the income is greater than the costs, the difference is recognized as income, if income is less than the cost, the difference will be recognized as a Loss
4. Relationship Balance Sheet with Income (Loss)
Consolidated profit (loss) is a transaction made for a certain period and the results of income (loss) will affect the capital owned.
This means if we have gain the capital that we have will increase by profits derived, whereas if it will automatically lose our capital would be reduced by losses. Thus the accounting equation for capital is as follows
CAPITAL = CAPITAL INCOME (LOSS)
Conclusion:
Accounting equation Gain (Loss) are as follows:
EARNINGS (LOSS) = REVENUES - COSTS
Accounting equation for capital is as follows:
CAPITAL = CAPITAL INCOME (LOSS)
Accounting for the balance equation is as follows:
ASSETS = LIABILITIES CAPITAL
Basic Accounting Process - Clarification, Recording, Summarizing, Interpretation and Reporting
Accounting has a process that consists of the stages to be able to generate the desired reports and conducted by the accountant.
1. Clarifying Process Transactions
This initial stage is where the transaction is a division of an organization or company into certain types predefined.
Examples of such share transactions entered into in sales, purchasing, cash disbursements, cash receipts, etc. into each section. As for the transactions that occur in small numbers and rarely can be equally incorporated into the same category type of miscellaneous transactions.
2. Process Records And Summarizing
After conducting further data pengklarifikasian is doing the recording. Enter your existing transactions into the appropriate journals in the order of the transaction occurs or happens. sources that can be used as evidence of a transaction that is like a kind of business paper bill, bill, bill, receipt, certificate, and so forth.
Journal which is typical accounting journal is like a sales journal, purchases journal, cash receipts journal, cash disbursements journals and general ledger.
When the transaction is entered into the journals that exist, then the next is to enter journals into the ledger on a regular basis. The result of the transfer into the general ledger will be seen from the summary trial balance.
3. Interpreting and Reporting Process
After both the above process is executed, then the latter process is to manufacture the conclusion of the activity or occupation prior financial statements. All matters relating to the finance company disclosed in financial statements.
From information on the financial statements either in the form of profit loss statements, the consolidated capital and balance sheet one can know what is happening at a company, whether already in accordance with company objectives and that information can be a reference or guidelines for the management to take policy decisions on the company's organization to achieve desired condition.
1. Clarifying Process Transactions
This initial stage is where the transaction is a division of an organization or company into certain types predefined.
Examples of such share transactions entered into in sales, purchasing, cash disbursements, cash receipts, etc. into each section. As for the transactions that occur in small numbers and rarely can be equally incorporated into the same category type of miscellaneous transactions.
2. Process Records And Summarizing
After conducting further data pengklarifikasian is doing the recording. Enter your existing transactions into the appropriate journals in the order of the transaction occurs or happens. sources that can be used as evidence of a transaction that is like a kind of business paper bill, bill, bill, receipt, certificate, and so forth.
Journal which is typical accounting journal is like a sales journal, purchases journal, cash receipts journal, cash disbursements journals and general ledger.
When the transaction is entered into the journals that exist, then the next is to enter journals into the ledger on a regular basis. The result of the transfer into the general ledger will be seen from the summary trial balance.
3. Interpreting and Reporting Process
After both the above process is executed, then the latter process is to manufacture the conclusion of the activity or occupation prior financial statements. All matters relating to the finance company disclosed in financial statements.
From information on the financial statements either in the form of profit loss statements, the consolidated capital and balance sheet one can know what is happening at a company, whether already in accordance with company objectives and that information can be a reference or guidelines for the management to take policy decisions on the company's organization to achieve desired condition.
Kinds and Types of Estimates or accounts in Accounting: Assets / Assets / Assets, Liabilities / Debt / Liabilities and Capital
A. Treasure / Assets / Assets
The property is a good thing that has a form or a pseudo-owned by the company. Claim for intangible property called equity / equities which can bring benefits in the future.
1. Current property / Current Assets / Current Assets
Current assets are assets in the form of cash or other assets that can be exchanged for cash within one year.
Examples: accounts receivable, costs or expenses paid in advance, securities, cash, gold bars, merchandise inventory, revenues to be received, and so forth.
2. Investment property / public investment assets / Investment Assets
Investment property is property which is invested in investment products for profit.
Example: Mutual funds, stocks, bonds, and others.
3. Intangible property / Intangible Assets
Intangible assets are assets that have no legitimate form but is owned companies and to generate profits for the company.
Example: trademarks, patents, copyrights, concession / concessions, franchises, goodwill, and so forth.
4. Immovable Property / Fixed Assets / Fixed Assets
Fixed property is property that support the operations of companies that permanent ownership.
Example: Building, cars, machinery, equipment and perlengapan office, and others.
5. Other property / Other Assets
Other treasures are estimates or accounts that can not be categorized on the property or assets in excess of either in the form of fixed assets, investment assets, intangible assets and current assets.
Example: The machine is broken, bond, property which is still in the process of legitimate stewardship, and others.
B. Liabilities / Debt / Liabilities / Liabilities
Debt is an obligation on third-party company to do something that is generally dalah payment of money, delivery of goods or services at certain times.
1. Current Debt / Current Liabilities / Current Liabilities
Current liabilities are obligations that must be repaid within one year.
Examples: accounts payable, expenses payable, accounts payable, taxes payable, unearned revenue, and so forth.
2. Long Term Debt / Long-Term Liabilities
Long-term liabilities are obligations that must be repaid within a period of more than a year.
Example: The mortgage debt, bonds with maturities of more than a year, long-term loans payable, and so forth.
3. Other payables / Other Payable
Estimates or the account used to record other debts that are not included in current liabilities and long-term debt.
Example: security deposit, payable to shareholders, and so forth.
C. Capital / Capital
Capital is the property of the company's wealth and property in the form of infinite debt of a company to the owners of capital to an unlimited period. The formula is a capital asset or an asset less any liabilities or debts.
Examples of capital: paid-up capital, Prive, partnership capital, retained earnings, share premium, preferred shares and ordinary savings, the remaining results of operations or shu, and so forth.
The property is a good thing that has a form or a pseudo-owned by the company. Claim for intangible property called equity / equities which can bring benefits in the future.
1. Current property / Current Assets / Current Assets
Current assets are assets in the form of cash or other assets that can be exchanged for cash within one year.
Examples: accounts receivable, costs or expenses paid in advance, securities, cash, gold bars, merchandise inventory, revenues to be received, and so forth.
2. Investment property / public investment assets / Investment Assets
Investment property is property which is invested in investment products for profit.
Example: Mutual funds, stocks, bonds, and others.
3. Intangible property / Intangible Assets
Intangible assets are assets that have no legitimate form but is owned companies and to generate profits for the company.
Example: trademarks, patents, copyrights, concession / concessions, franchises, goodwill, and so forth.
4. Immovable Property / Fixed Assets / Fixed Assets
Fixed property is property that support the operations of companies that permanent ownership.
Example: Building, cars, machinery, equipment and perlengapan office, and others.
5. Other property / Other Assets
Other treasures are estimates or accounts that can not be categorized on the property or assets in excess of either in the form of fixed assets, investment assets, intangible assets and current assets.
Example: The machine is broken, bond, property which is still in the process of legitimate stewardship, and others.
B. Liabilities / Debt / Liabilities / Liabilities
Debt is an obligation on third-party company to do something that is generally dalah payment of money, delivery of goods or services at certain times.
1. Current Debt / Current Liabilities / Current Liabilities
Current liabilities are obligations that must be repaid within one year.
Examples: accounts payable, expenses payable, accounts payable, taxes payable, unearned revenue, and so forth.
2. Long Term Debt / Long-Term Liabilities
Long-term liabilities are obligations that must be repaid within a period of more than a year.
Example: The mortgage debt, bonds with maturities of more than a year, long-term loans payable, and so forth.
3. Other payables / Other Payable
Estimates or the account used to record other debts that are not included in current liabilities and long-term debt.
Example: security deposit, payable to shareholders, and so forth.
C. Capital / Capital
Capital is the property of the company's wealth and property in the form of infinite debt of a company to the owners of capital to an unlimited period. The formula is a capital asset or an asset less any liabilities or debts.
Examples of capital: paid-up capital, Prive, partnership capital, retained earnings, share premium, preferred shares and ordinary savings, the remaining results of operations or shu, and so forth.
Parties The Use and Need Information / Reports Accounting
1. Internal Parties
Internal party is the party that is in the organizational structure. Management is the party most in need of proper reporting and accurate accounting to make good decisions and correct. Examples of managers who see the company's financial position to decide whether to buy the building for a new branch kanntor or not.
2. Parties Eksteral / External
a. Investors
Investors need a financial information company to decide whether to invest or not. If the predictions of investors will give good profits, then investors will deposit the capital into the company, and vice versa.
b. Shareholder / owner of the company
The owners of the shares of companies that have a financial information company, companies need to know the extent to which progress or setbacks suffered by the company. Shareholders will benefit from the dividends that will be even greater if the company's big profit.
c. Government
The amount of tax to be paid a company or organization to the government a large part based on information on the company's financial statements.
d. Creditor
If the company is recessive and requires fresh capital the company may borrow money to creditors such as borrowing money in the bank, owes goods on supplyer / supplier. Lenders will provide funds if the company has good financial condition and will not have a great potential for loss.
e. Other Parties
Actually there are many other parties from outside companies who might be using the reporting / accounting information of an organization such as employees, unions, auditors of public accountants, police, students, journalists, and many others.
Internal party is the party that is in the organizational structure. Management is the party most in need of proper reporting and accurate accounting to make good decisions and correct. Examples of managers who see the company's financial position to decide whether to buy the building for a new branch kanntor or not.
2. Parties Eksteral / External
a. Investors
Investors need a financial information company to decide whether to invest or not. If the predictions of investors will give good profits, then investors will deposit the capital into the company, and vice versa.
b. Shareholder / owner of the company
The owners of the shares of companies that have a financial information company, companies need to know the extent to which progress or setbacks suffered by the company. Shareholders will benefit from the dividends that will be even greater if the company's big profit.
c. Government
The amount of tax to be paid a company or organization to the government a large part based on information on the company's financial statements.
d. Creditor
If the company is recessive and requires fresh capital the company may borrow money to creditors such as borrowing money in the bank, owes goods on supplyer / supplier. Lenders will provide funds if the company has good financial condition and will not have a great potential for loss.
e. Other Parties
Actually there are many other parties from outside companies who might be using the reporting / accounting information of an organization such as employees, unions, auditors of public accountants, police, students, journalists, and many others.
Understanding and Explanation of Basis of Accounting
Accounting is the process of recording, classifying, summarizing, processing and presenting data, transactions and events relating to the finances so that it can be used by people who use them with an easy to understand for decision-making and other purposes.
A. Understanding and Definition of Accounting
Accounting comes from foreign word that means when translated into Indonesian is to calculate or account. Accounting is used in almost all business activities around the world to make a decision that called the language of business.
B. Accounting Functions
The main function of accounting is a financial information of an organization. From the accounting statements we can see sutu financial position and its organizational changes that occur in it. Accounting made qualitatively with the unit of measure of money. Information on finance urgently needed especially by the manager / management to help make decisions of an organization.
C. Accounting Basic Reports
Basically, the accounting process will make the output of the income statement, statement of changes in equity, and consolidated balance sheet of a company or other organization. In an accounting report must include company name, report name, and date of preparation or length of the report to facilitate other people understand it. Reports can be periodically and there is also a character of a particular time only.
A. Understanding and Definition of Accounting
Accounting comes from foreign word that means when translated into Indonesian is to calculate or account. Accounting is used in almost all business activities around the world to make a decision that called the language of business.
B. Accounting Functions
The main function of accounting is a financial information of an organization. From the accounting statements we can see sutu financial position and its organizational changes that occur in it. Accounting made qualitatively with the unit of measure of money. Information on finance urgently needed especially by the manager / management to help make decisions of an organization.
C. Accounting Basic Reports
Basically, the accounting process will make the output of the income statement, statement of changes in equity, and consolidated balance sheet of a company or other organization. In an accounting report must include company name, report name, and date of preparation or length of the report to facilitate other people understand it. Reports can be periodically and there is also a character of a particular time only.
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