Accounting grade 12

Lesson presentation: Accounting Concept

Lo 1 AS 1, 2 and 4

Remember the Accounting equation formula

Asset = Liability+ Owners equity

Assets are divided into two (2)sections:

Current assets and non-current assets.

Liabilities are also divided into two (2)

sections:
Current liabilities and non-current liabilities.

Proprietorship also known as Owners’ equity

consists of three (3) major sources of income.
Capital. i e money used to start a business.
+ Profit> money earned by the business
after
deducting all the expenses.
-Drawings > money used by the owner for
personal use.
 Balance Sheet

The Accounting Equation

If one account is debited another account must be

credited with the same amount so that the balance
sheet can balance at the end of the financial year.

The balance sheet and the Income statement are the

financial statement of the business.

In case of a public company these statements should

be published.

The double entry system

 Assets increases on the debit side
and decreases on the credit side.

Meanwhile

Liabilities as well as owners equity

increases on the credit side and
decreases on the debit side

Learners are expected to use Pastel Accounting

Software programme designed for the grade 10.

To applying the concept of accounting equation

using ICT.

Without the knowledge of information and

communication technology ICT it will be impossible
to be employed as a junior accountant.

Effect on accounting equation

If one account is debited another account must be

credited with the same amount so that the balance
sheet can balance at the end of the financial year.

The balance sheet and the Income statement are the

financial statement of the business.

In case of a public company these statements should

be published.

Teaching Accounting using ICT