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Lecture notes AcF 211 (AC.F111)
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Provides explanation of conceptual framework and double entry bookkeeping, with examples to better understand the topic and ace your tests.
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Financial Accounting:Topic 2: The accounting equation
and double entry book-keeping
Professor Argyro Panaretou
1
,Topic 2 outline
• The accounting equation and simple financial
statements
• Revenue and capital expenditure
• Documentation and books of prime entry
• Double-entry bookkeeping
2
,The accounting equation and
simple financial statements
3
, The Accounting Equation
Assets = Capital + Liabilities
Assets – Liabilities = Capital
ces of the business
Net resources of the business
4
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