Accounting is not as difficult as you think.
If we divide into 2 types of accounting1. Profit and loss 2. Accounting


    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. Income

2. 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 income
    1.1. 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 assets

1. 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


Gross profit

   - Income
Expenses of Income
   - Selling Cost
Gross Profit 
Operating Costs
   - R&D
   - Sales,Accountancy
Operating income or loss
Other income
   - Foreign Exchange Profit
   - Disposal of Company Assets
Other expenses
   - Interest on Debt
   - Depreciation
Net Profit


Current assets
   - Cash and Bank Account
   - trade accounts receivable
   - Deferred Tax Assets
Non-current assets
   - Land and Buildings 
   - Intangible Assets
Total Assets
Current liabilities
   - Trade Payable
   - Deferred Income
   - Deferred Tax Liabilities
Non-current liabilities
   - Long Term Loan
Net Assets
   - Common Stock
retained earnings
Total Capital

    I hope that this article will help many people understand the process of accounting. If you have any questions, you can ask at…..(Read more)

Accounting is not as difficult as you think.
Supattra Yordthern
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