A statement of profit and loss (P & L) is a summary of all income and expenses of an enterprise during a period of time’ After a period of loss or gain of the company is calculated by subtracting the total cost of the total revenue’ The period in question could be any time but is usually one month, a quarter of a year (3 months) or a full year’ Both income and expenditure can be demonstrated in the amounts listed for each account or summary form’ AP & L, not only information on whether a company is profitable or not, but a P & G may indicate why a certain result is reached’ The amount for each type of income and each type of expenditure can be compared to a standard’ The rule in May of a budget or a relation or comparison of the industry’ These concepts will be discussed later in the series’

A balance sheet (BS) of the assets, liabilities and net worth of a company at any given time’ Again, the point in time can be any day, but in general it was reported at the end of the month, quarter or year’ BS A sample at all times that the company owns (assets), what the company needs to others (liabilities) and the net position of the firm (capital)’ The results of the equation can be represented by:

Active? Liabilities = Capital

In other words, if the total assets is greater than the total liability then the owners are positive or positive equity ownership’

An equilibrium is a list of all accounts in the transactions (income, expenses, assets, liabilities and capital), their balances at a particular point in time and if the balances are debits (Dr) or credits (Cr)’ Balance, as its name indicates, always equal, and the balance of Dr’ Cr

Ledger, debtors ledger, creditors ledger

The general ledger (GL) is a list of all transactions, the account name entered into a period of time’ GL contains all transactions of a company and is used to discuss the details of income, expenses, assets or liabilities’

Debtors and creditors ledger are the types of sub-ledger’ They are called car, and that are subsidiaries or part of the GL’ The debtor, also called accounts receivable (AR) ledger, the details of all customers who owe money to the company’ Details include all sales, all payments received and the balance to pay for each customer at any time’

By contrast, creditors ledger, also known as accounts payable (AP) ledger, the details of all suppliers to whom the firm owes him money’ Details on all purchases, all payments and the outstanding balance of the verses to each supplier at any time’

Where appropriate to balance the account, both parties joined, and if the total of both sides are not equal, the difference is then placed on the side with less total’ Will be two equal parts’ The added amount of the difference is known as “balance” account’ In the column details, said that the balance c / d (loading)’ In the aftermath, known as balance supply (reduced)’ If the total amount credited to this account is lower, the balance will be included in the claim to the word “Balance c / d”‘ This is called the balance and the balance after the closure of the account, to be published in the stream with the “To supply’” Even if the total debit of the account is lower, the balance will be included in the flow by “Balance c / d”‘ This is called balance, and balance after the closure of account, the credit will appear with the words “offer for sale’”

Personal accounts

It is useful to refresh your memory and remember that the personal accounts related persons and entities (partnership, corporation, etc’) and the norm is to charge the receiver and the donor must be accredited’ Now, if a date in the business world wants to know how the amount is “due” or “because of an individual to own (business), then you must balance the account of the person’ Balance of the account debtor means that the person is liable for the company, ie the person responsible for an amount equal to the balance of the company or the amount representing the balance due the company by the person’ Similarly, the balance of the credit means that the person is a creditor of the company, ie, firms need an amount equal to the balance of the person or the amount representing the balance due for the company person’

Account

These are the accounts relating to ownership or possession or rights’ The rule is: “What is to be in the flow and fate is what is credited’” Therefore, all revenue should be recorded on the flow and spending on credit’ At a date for these accounts must be “balanced” that represents the value of the hedged item in the account’ At the end of the year (usually) or at any time the financial position of the company is required to be audited the accounts are balanced’ These balances are presented in the assets of the statement of the position or balance sheet’ These accounts are the “balance” which means “value” or “in writing the value” or “business continuity of corporate value on that date’

Nominal accounts

These are accounts that show the various heads of expenditure and sources of income’ At the end of the period (usually one year), these accounts are closed by the transfer to the final, ie accounts and profit and loss account’

Need for Increased

The maintenance of the work is a necessity in every system’ Is required, as distinct advantages:

(1) Transactions with the family of a person, issue or position of the expenses or revenues are grouped into the site’

(2) At each regular account is balanced to reflect the net position of that account’ For example, what is due from a client or how much is paid to a vendor or what is the value of total purchases, or what is the expenditure on salaries? This information is available through the balance of general ledger accounts’

(3) Mayor is the springboard for the preparation of balance, which tests the accuracy of arithmetic’ Of accounting’

(4) Since the entries stored in the journal of the book refers to the possibility of mistakes or to minimize embezzlement’

(5) Mayor is the fate of all entries made in the newspaper or magazine under’

(6) Mayor is the “home-shop of all information which is then used for the preparation of final accounts and financial statements’

Entry and mailing’ In the case of an existing business, we are compelled to pass an entry in the register (on the balance at the end of the previous year) to attract new books of all assets and liabilities: open entry of the call’