Accounting Introduction

Before going into accounting let us look at these generally known facts:

1.Creditor is the person from whom some amount came and debtor is the person to whom that amount reached. Thus amount at the creditor is reduced and it is said to be credited and the same amount is increased at the debtor and it is said to be debited.

2.From where a company will get the amounts?

1. An outside party, 
2. Owner, 
3. Revenue from sale of goods or services

These 3 are known as liability, Equity and Income respectively

3.To what purpose company uses those amounts?

1. Kept as or convert into an asset
2. Spend for purchase of goods or services

These 2 are known as Assets and Expenses respectively

4.When a company gains some amount it will be added to owners equity when it losses some amount it will be deduced from the owner.