Definition of Balance Sheet

Balance Sheet is a report that describes a company's financial position at a certain moment, also the final results accounting process. This financial report shows the company's property (assets), the amount of borrowed money (debt) and the number of equity. Equity is the difference between assets and liabilities owned by the company.

Reconciliation Bank

Reconciliation bank is adjustment between Bank Account according to Company note and Bank Statement

Cause of diferrence between Bank Statement with Company note :
1) Bank have accepted company debitor invoice while company not yet noted
2) Bank accept the expense of administration while company not yet noted.
3) Bank accept of interest while company not yet noted.
4) Bank refuse the debitor cheque
5) Outstanding cheque

Account Statement

Account Statement is made report systematically by bookkeeping shares by the end of accounting period and able to be made the source of monetary information the company

Account Statement generally there is 4 report, that is :
1. Income Statement
2. Capital Statement
3. Balance Sheet
4. Cash Inflow / Cash Outflow

Introduction of Accountancy

Accountancy is record-keeping process, classification, summarizing, monetary transaction that happened at one particular organization and also report the result.

Formula of Accountancy :

Asset = Liabilities - Equity

Asset is properties had by company like cash, Account Receivable, supply, Prepaid Expense, Equipment, building, land and others. Asset in balance divided two that is Current Asset & Fixed Asset.

Liabilities is Company debt to other party which must immediately paid like Account payable, Unearned revenue, Loan bank and others.
Liabilities in balance divided two that is Current Liabilities & Long term Debt

Equity is Right all owners in company inculcated in company



Example :

Mr. A Companies invest cash money Rp. 25.000.000,-,
If the Transaction input in accountancy formula as follow :

Asset = Liabilities + Equity

Rp. 25.000.000 = - + Rp. 25.000.000