accounting...

haha ... today , went to kw's hse to mj showdown ... now, let me analyse todays results and togther, lets have a little simple accounting lesson ...

accounting is basically done in 2 steps (2 steps that we care about the most, there should actually be more...)... alright ... the 2 steps are

1.P&L (profit and loss statement)
2.Balance sheet ( where you will know whether you are correct or not)

firstly the p&l .... revenue 1st then expenses ...

Anderson Koh

Profit and loss statement

for the day ended 13th october 2006

Revenues:

MJ Revenues- $ 123

Total revenues- $123

Expenses:

Mac Donalds meal - $7

MJ Expenses - $50

Taxi fare- $7

Total expenses - $64

Net Profit -$59

Now comes the balance sheet ... list down in order 1) Current assets , 2) Fixed assets, 3) Current lialibilities , 4) Long term lialibilities, 5) Capital ...

Anderson Koh

Balance sheet

as at 14th october 2006

Assets :

Cash at hand -$60

Debtors- $63

Total assets - $123

Lialibilities

Creditors - $0

Total lialibilities - $0

Owners equity

Opening capital $64

Add net profit - $59

Ending capital - $123

Total Lialbilities+ Owner's equity (Capital) - $123

So, this is accounting .... Get it ?

Disclaimer: This is just the rough outline of the accounting process ... some steps are skipped for personal convenience ... haha !!