Chapter 1: Intro to Accounting
Assets, Liabilities, and Capital.
The Golden Equation 💰
The entire system of accounting is based on this balance:
Assets = Liabilities + Capital
What you own = What you owe + What you invested
Assets (Dr)
- Cash
- Furniture
- Machinery
Liabilities (Cr)
- Bank Loan
- Creditors
- Bills Payable