1. Principles of Accounts Form Four

2. What is accounting The uses to which data recorded by bookkeeping can be put for various purposes. Recording accounting data( 記錄 ) Classifying and summarising( 分類 ) Communicating information( 溝通 ) The part of accounting that is concerned with recording data is often known as bookkeeping.

3. The Accounting Equation ( 會計等式 ) Assets =Capital + Liabilities Assets : 資產 Capital : 資本 Liabilities : 負債

4. The Accounting Equation ( 會計等式 ) Assets =Capital + Liabilities Assets eg. machine, motor van, cash, furniture, equipment, fixtures and fittings, buildings, stock, debtor ( 應收帳 ) 債務人

5. The Accounting Equation ( 會計等式 ) Assets =Capital + Liabilities Liabilities eg. loan from company, bank loan creditor ( 應付帳 ) 債權人

6. The Accounting Equation ( 會計等式 ) Assets =Capital + Liabilities Capital Introduced by owner Drawings Drew by owner

7. The Accounting Equation ( 會計等式 ) Assets =Capital + Liabilities Exercise: Loan from ABC Company= $150 Motor car=$300 Cash=$100 Capital =?

8. Effect of transactions upon assets liabilities and capital Buy goods 貨物 on credit 未付款 ↑assets ↑liabilities Paid loan by cheque ↓liabilities ↓assets

9. Effect of transactions upon assets liabilities and capital Ex. Buy motor van by cash Owner introduce cash into business