Accountancy
If we didn't study accounting, we probably wouldn't understand the process and no one would want to touch the accounting department because it seemed like a lot of headache, but to understand the basic process of accounting simply would be a cost. These include salaries for administration, sales, R&D, rent and utilities. Miscellaneous expenses, insurance, etc.
But there are few types of bookkeeping. If we divide into 2 types of accounting
1. Profit and loss
2. Accounting
So let's start with section 1, profit and loss. This section, It will calculate profit and loss. which consists of
Gross profit
1. Income2. Less expenses of Income
2.1. Cost of sales
Operating income or loss
1. Expenses within the company It will consist of employee salaries, rent, utility bills. Miscellaneous expenses, etc.
Net profit
1. Other income1.1. Profit from foreign exchange
1.2. Disposal of the Company's assets
2. Other expenses
2.1. Interest on debt repayment
2.2. Depreciation expense
2. Accounting will consist of
Total assets1. Current assets
1.1 Cash and bank accounts
1.2 Trade accounts receivable
1.3 Deferred tax assets
2. Non-current assets
2.1 Land and buildings
2.2 intangible assets
(*Intangible assets are intangible assets no physical shape but ownership)
Net assets
1. Current liabilities
1.1 Trade accounts payable
1.2 Deferred income
1.3 Deferred tax liabilities
2 Non-Current Liabilities
2.1 Long-term loan
Total capital
1. Capital
1.1. Ordinary shares
2. Retained earnings
Accounting
Gross profit | Accounting Current assets |