HACCS

Accounting as "The One Degree with 360 Degrees of Possibilities"
what do you understand above statement ?

Juma karem All accountants and non accountatns

Today we are going to discuss Accounting equation
The Accounting Equation
The resources controlled by a business are referred to as its assets. For a new business, those assets originate from two possible sources:
Investors who buy ownership in the business
Creditors who extend loans to the business
Those who contribute assets to a business have legal claims on those assets. Since the total assets of the business are equal to the sum of the assets contributed by investors and the assets contributed by creditors, the following relationship holds and is referred to as the accounting equation :
Assets = Liabilities + Owners' Equity
Resources Claims on the Resources
Initially, owner equity is affected by capital contributions such as the issuance of stock. Once business operations commence, there will be income (revenues minus expenses, and gains minus losses) and perhaps additional capital contributions and withdrawals such as dividends. At the end of a reporting period, these items will impact the owners' equity as follows:

Assets = Liabilities + Owners' Equity
+ Revenues
- Expenses
+ Gains
- Losses
+ Contributions
- Withdrawals
These additional items under owners' equity are tracked in temporary accounts until the end of the accounting period, at which time they are closed to owners' equity.
part one.. thanks 4 your reading.
inshlh second part of this lesson Debit and credit.