1. Accounting process

2. Accounts Account Examples: Office equipment, Sales, Salaries expense
An individual record of increases and decreases in an item that is likely to be of interest or importance
Examples: Office equipment, Sales, Salaries expense

3. Classification of Accounts
Asset accounts
Examples: Land; Buildings; Equipment; Cash
Liability accounts
Examples: Creditors; Wages Payable
Owners’ equity accounts
Examples: Capital; Retained Earnings;
Sales Revenue; Salaries Expense; Dividends

4. The Double Entry System
The T account
Debit is left side of T account
Credit is right side of T account
Debits = Credits

5. The Accounting Equation Revisited
The equation,
Assets = Liabilities + Equity
can be rewritten as
Assets = Liabilities + Capital + Revenues
– Expenses – Dividends
which can be rewritten as
Assets + Expenses + Dividends =
Liabilities + Capital + Revenues

6. Debit and Credit Rules