Cloud Web-based ERP SaaS Software & GST
a) a) Bookkeeping works under the concept of double entry system, recording financial transactions under credits and debits heads.
b) b) Debits represent an asset and Credits represent a liability. Debit will increase the value of an asset and credit will reduce its value.
"Initially bookkeeping may confuse you a little bit, but the fact is, it’s very simple once you understand the strategy of financial transactions, Debits, Credits and Equity".
1. 1) Assets are economic resources a company owns, such as cash, inventory, buildings, equipment, vehicles etc.
2. 2) Liabilities include loans payable, bonds payable, interest payable, wages payable, and income taxes payable. Less common liabilities are customer deposits and deferred revenues.
3) Equity is the value of an asset less the value of all liabilities on that asset.