Evaluation:
Published: 17.05.2021.
Language: English
Level: College/University
Literature: 1 units
References: Not used
  • Presentations 'Double-Entry Bookkeeping System', 1.
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Extract

Accounting equation approach
The rules may be summarized as below:
1.Assets Accounts
2.Capital Account
3.Liabilities Accounts
4.Revenues or Incomes Accounts
5.Expenses or Losses Accounts

Debits and credits
Double-entry bookkeeping is governed by the accounting equation.
assets = liabilities + equity
Debits and credits are numbers recorded as follows:
Debets
Credits
Debit accounts
Credit accounts

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