Accounting principles

Accounting principles is a summary of recording the results of any analysis of economic events or transactions that occur on the Company's financial and organization.

 So what is a accounting principles?

a. Understanding and formulation of accounting principles.

          In the event of financial transaction will result in changes in the assets, liabilities, and capital. Changes that we summarized in the equation.

      

          Maybe you already learned about the  Accounting principles  majors in high school when Ips. But, for those who had not learned we learn together about the accounting principles.

           To better understand the  Accounting principles  in the example at the beginning of the company, its owner or a cash deposit in the form of objects valued at USD 5000.00 for the initial capital of his business without any debt,

then the equation is:

 Assets = Capital

  Thus, Rp = Rp 5000.00 5000.00

property owned by the same company that is owned by the property owner.

 On the other hand there are rights of creditors is called debt

If the owner of the capital increase of USD 2500.00 debt, then its equation becomes:

  Assets = Liabilities + Capital

Thus, Rp Rp 2500.00 + 7500.00 = 5000.00 USD

Thus the development of the accounting principles is as follows:

Assets = Liabilities + Capital

 Analysis of Accounting principles

  ASSETS = LIABILITIES

ASSETS = CAPITAL + DEBT

The influence of financial transactions:

- Add / subtract any assets

- Add / subtract any liabilities

- Increase / decrease assets and liabilities

Revenues and Expenses

Capital increase revenue, reduce cost of capital

b. Financial Transactions and accounting principles

            Financial transactions and the  Accounting principles  is to add, subtract, or change the composition of assets, liabilities, and / or capital. Settlement of the equation was the result of analysis of the impact of the financial transactions that occur.

For simplicity in understanding the impact of changes in the equation as a result of the financial transaction, let us examine the following case example.

Accounting unsika's Salon Ny. Ayu, which is located at Jl. Joyo Utomo 504 Malang, recently opened in early 2007, was placed in the front room of his house. While the room is not included as assets of the salon, but considered renting.

During the month of January 2007 the financial transactions carried out as follows:

A. Ny. Ayu Rp 1.000.000,00 cash deposit as a first or initial capital investment in Salon Akuntansi unsika.

2. In cash to buy salon equipment worth Rp 300.000,00

5. Pay the room rent for the month of January of Rp 100.000,00

   7. Buying on credit from the shop Makmur salon equipment and supplies worth USD 500,000.00 (suplies) salon worth Rp 200,000.00.

   9. Borrowed money from Bank by signing a three-month term note interest rate of 12% per year valued at Rp 750,000.00

14. Bride makeup job done Ny. Yuli and valued at USD 450,000.00 and direct cash be paid

15. Paid salaries for the month of January Rp 150,000.00

20. Bridal make-up work completed for the mother Harmini worth Rp 550,000.00. cash received as much as Rp 250.000,00 and the rest will be paid in February 2007

22. Repaid debt amounting to Rp 200,000.00 Makmur Stores

25. Paid the electricity bill for the month of January Rp 75.000,00

29. Received from Mrs. Harmini installment debt to Salon as much as Rp 150,000.00

30. Cash taken by Ny. Ayu amounting Rp 100.000,00 for their personal use.

31. Interest paid on notes for the month of January of Rp 7500.00

Any financial transactions on the dates mentioned above will bring the impact of changes to the three components of the  Accounting principles  (assets, liabilities, and capital).

The influence of each financial transaction is the  Accounting principles   can be seen in the following table:

Accounting principles  can be modified into:

                Assets + Expenses (cost) = Liabilities + Capital + Income

With that case, the transaction data in a case that occurred in Accounting unsika salon on the  Accounting principles can be arranged as follows:

   c. Comparison of the accounting principles

Two examples of the  Accounting principles  to complete the financial transactions look different is not it?

In the completion of the first equation, making the classification of the assets and debts, expenses and revenue while directly added or subtracted to the capital. In the second equation elements of assets and debts are not graded, but the expenses and revenues are separated from the capital. In practice in the world of work you can use one of the two equations, given that the end result or the resulting information together.

Moreover, the fact of the business world will you find many similar transactions, ie transactions that led to changes in assets, liabilities, or capital. The examples presented above are just a fraction of the actual transaction. It is hoped that these examples can be used as a reference in the attitude of accounting if there is a similar transaction.

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