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