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The Double Entry System 複式記帳法



The Double Entry System 複式記帳法

- Business entity concept 企業個體概念

- The Accounting Equation : Assets = Capital (Owner's equity) + Liabilities

- Effects of transactions on the accounting equation :
  1. The owner introduced capital 東主投入資本 (A+, C+)
  2. Bought an asset by cheque 以支票付款購買資產 (A+, A-)
  3. Bought an asset on credit (A+, L+)
  4. Repaid a liability 償還負債 (A-, L-)
  5. Borrowed money from people other than the owner 向外人借貸 (A+, L+)
  6. Sold an asset on credit (A+, A-)
- Double-entry bookkeeping
   LHS: Debit side 
   RHS: Credit side