‫مكتبة اشرقت‬

SBA Center
www.schoolofBusiness.net

First Grade
Sheet (1)

Accounting
Chapter 1
Dr\Ahmed Tonsy
Dr\Abdel Rhaman Kamal
Dr \ Hevan Adel

‫مكتبة اشرقت‬
SBA Center 2021-2022 1st - Accounting

What is accounting ?
Accounting is language of business and money.

Accounting is an information system that identifies, records, and communicates the

economic events of an organization to interested users.

Bookkeeping Accounting
Only record economic event & Involve entire process identifies, records, and
Transations communicates the economic events of an
‫زي ((الباش كاتب )) كده مجرد بيسجل فقط‬ organization to interested users

Subject Instructor
1st lecture – Chapter (1) Accounting
Accounting -Ahmed Tonsy
f

With Dr \ Ahmed Tonsy - Abdelrahman kamal

Saturday 16\10 11:00 a.m - Hevan Adel
Tuesday 19\10 6:30 p.m Economics --joe & Sherif
Thursday 21\10 11:00 a.m (O.B) - Abdalla Al-Bardissy
Friday 22\10 2:00 p.m
Management - Abdalla Al-Bardissy
‫علي الطالب اختيار معار واحد فقط من المواعيد‬
, ‫السابقه‬ Math - Aly Adel
01122201152 ‫لحجز المعاد االتصال علي رقم‬ - Ahmed Helal

Ahmed Tonsy
‫مكتبة اشرقت‬ 011 222 011 52 |Page1
‫املكان بتاعنا ميدان العباسية جنب‬
‫كبدة الفالح‬
SBA Center 2021-2022 1st - Accounting

General framework of Accounting

• record , communicate economic events to intersted users.

• provide information mainly for external users.
Financial • use GAAP as standard (Generally Accepted Accounting Principle).
Accountng

• Provide information for managers.

• internal users only.
Managment • no GAAP.
Accounting

• Provide information about cost of product or services .

• internal users only.
Cost • no GAAP.
Accounting

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‫‪SBA Center 2021-2022‬‬ ‫‪1st - Accounting‬‬
‫‪Accounting profession‬‬
‫‪First : Public Accounting‬‬ ‫‪Second : Private Accounting‬‬
‫‪Offer services to general in the same way that‬‬ ‫وظائف تخصصيه في الشركات زي مثال ‪:‬‬
‫‪doctor serve patient & lawyer serve client‬‬ ‫‪1- general Accountant‬‬
‫مكاتب المحاسبه اللي بتقدم خدمات عامه للشركات واالشخاص‬ ‫‪2- Cost Accountant‬‬
‫في الحسابات والضرائب مثال‬ ‫‪3- internal Audit‬‬
‫‪4- tax Accountant‬‬
‫‪5- Accounting information system‬‬

‫‪Basic Accounting equation‬‬

‫‪First : Asset‬‬

‫‪Asset‬االصول‬

‫الممتلكات اللي بتمكلكها الشركه وبتستخدمها في نشاط الشركه وليها منفعه للشركه زي مثال ‪ :‬الكاش واالالت والمعدات واجهزه‬
‫الكمبيوتر وخلي بالك ان االصول دي يتساعد الشركه انها تجيب ايرادات يعني مثال مفيش سوبر ماركت من غير بضاعه او‬
‫ثالجات الجبنه فالزم يبقي عندهم االصول دي اصال عشان يعرفوا يبيعوا‬

‫‪Examples of Asset:‬‬
‫‪Cash , Account receivables , Notes receivables , inventory , equipment , supplies , machines‬‬
‫فلوس لينا بره لسه مخدنهاش‬

‫مكتبة اشرقت‬
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‫املكان بتاعنا ميدان العباسية جنب كبدة‬

‫الفالح‬
‫‪SBA Center 2021-2022‬‬ ‫‪1st - Accounting‬‬
‫‪Second : Liabilities‬‬

‫‪ Liabilities=Debts‬االلتزامات=الخصوم=الديون‬

‫دي اي ديون علي الشركه مثال لو الشركه اشترت تكييفات ومدفعتش ثمنها يبقي هي كده مديونه او الشركه اشترت بضاعه علي‬
‫الحساب (مدفعتش) يبقي ده ديون عليها‬

‫‪Examples:‬‬
‫‪Account payable (A\P) , Notes payable (N\P) , Salary payable ..........‬‬

‫‪Third : owner's equity‬‬

‫معناها االستثمارات اللي صاحب الشركه بيحطها في الشركه ‪ ,‬بمعني حضرتك لو قررت تعمل مشروع وتفتح شركه هتروح تاخد‬
‫فلوسك الشخصيه من البنك وتحطها في حساب الشركه تبقي ساعتها مبقتش فلوسك بقت فلوس الشركه‬

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‫‪SBA Center 2021-2022‬‬ ‫‪1st - Accounting‬‬

‫‪ drawing‬مسحوبات‬

‫دلوقتي لو انت صاحب شركه ماشاء هللا وجيت في يوم احتجت فلوس عشان خاطر حاجه شخصيه ( وليكن عشان تجيب هديه‬
‫الفالنتين يامنيل) ابسط حاجه هتعملها تروح داخل علي خزنه الشركه وتسحب منها فلوس شخصيه ليك دي بقي احنا بنسميها‬
‫كمحاسبين مسحوبات‪drawing‬‬

‫‪ Revenue‬االيرادات‬
‫االيرادات اللي بتجيلي من الشركه مقابل بيع بضاعه زي كارفور مثال او مقابل تقديم خدمه زي شركه الموبيل فودافون ‪ ,‬بس خلي‬
‫بالكم من حاجه االيرادات مش هي االرباح ‪profit‬‬
‫االرباح ده معناها ايرادات اللي ربنا كرمك بيها بعد ماتطرح منها كل مصاريفك ‪ ,‬وهندرس الكالم ده قدام شويه‬

‫‪ Expenses‬المصروفات‬
‫ركز بقي معايا‪ ....‬اي شركه فالدنيا بتهدف ان تحقق ايرادات ‪ revenue‬بص بقي ياسيدي علشان سيادتك تحقق ايرادات عمرها‬
‫ماهتحصل اال لما تصرف شويه مصروفات مثال‪ :‬سوبر ماركت عشان يعرف يبيع بضاعه ويحقق ايراد الزم يصرف شويه‬
‫حاجات زي مصروف االيجار ‪ ,‬مصروف المرتبات ‪ ,‬مصروف الكهرباء‬
‫يبقي المصروفات هي كل اللي بصرفه عشان خاطر عيون الشركه وعشان خاطر يجيلي ايرادات‬

‫مكتبة اشرقت‬
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SBA Center 2021-2022 1st - Accounting

capital increase by
1) Investment by owner 2) Revenue
capital decease by
1) Expenses 2)Drawing(withdrawal)

Exercise (1)
Presented below is the basic accounting equation. Determine the missing amounts
Assets = Liabilities + Owner's Equity
(a) $90,000 $50,000 ?
(b) ? $40,000 $70,000
(c) $94,000 ? $53,000
Solution
(a) $90,000 – $50,000 = $40,000 (Owner’s Equity).
(b) $40,000 + $70,000 = $110,000 (Assets).
(c) $94,000 – $53,000 = $41,000 (Liabilities).

Exercise (2)
Given the accounting equation, answer each of the following questions.
(a) The liabilities of Buerhle Company are $120,000 and the owner's equity is $232,000.
What is the amount of Buerhle Company’s total assets.
(b) The total assets of Buerhel Company are $190,000 and its owner's equity is $91,000.
What is the mount of its total liabilities ?
(c) The total assets of Buerhle Company are $800,000 and its liabilities are equal to one half of Is total
assets. What is the amount of Buerhel Company's owner's equity?

Solution
(a) $120,000 + $232,000 = $352,000 (Total assets).
(b) $190,000 – $91,000 = $99,000 (Total liabilities).
(c) $800,000 – 0.5($800,000) = $400,000 (Owner’s equity).

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 SBA Center 2021-2022 1st - Accounting

Exercise (3)
At the beginning of the year, Danks Company had total assets of $800,000 and total Liabilities of $300,000.
Answer the following questions.
(a) If total assets increased $150,000 during the year and total liabilities deceased $80,000, what
is the amount of owner's equity at the end of the year?
(b) During the year, total liabilities increased $100,000 and owner's equity decreased $70,000.
What is the amount of the total assets at the end the year?
(c) The total assets decreased $80,000 and owner's equity increased $120,000 during the year, what Is
the amount of total liabilities at the end of the year?
Solution

(a) ($800,000 + $150,000) – ($300,000 – $80,000) = $730,000 (Owner’s equity).

(b) ($300,000 + $100,000) + ($800,000 – $300,000 – $70,000) = $830,000 (Assets).
(c) ($800,000 – $80,000) – ($800,000 – $300,000 + $120,000) = $100,000 (Liabilities).

Exercise (4)
Use the expanded accounting equation to answer each of the following questions.
(a) The liabilities of falk Company are $90,000. Owner's capital account is $150,000; drawings are 40,000;
revenues. $450,000; and expense, $320,000.
what is the amount of Flak Company's total assets?
(b) The total assets of pierogi Company are $57,000. Owner's capital account is $25,000: Drawings are
$7,000: revenues, $52,000; and expenses, $35,000. What is the amount of theCompany's total liabilities?
(c) The total assets of Yonko Co. are $600,000 and its liabilities are equal to two-thirds of its total Assets.
What is the amount of yanko Co. 's owner's quity?
Solution
Owner’s Equity
Owner’s Owner’s
Assets = Liabilities + Capital – Drawings + Revenues – Expenses

(a) X = $90,000 + $150,000 – $40,000 + $450,000 – $320,000

X = $90,000 + $240,000
X = $330,000

(b) $57,000 = X + $25,000 – $7,000 + $52,000 – $35,000

$57,000 = X + $35,000
X = $22,000 ($57,000 – $35,000)

(c) $600,000 = ($600,000 x 2/3) + X (Owner’s equity)

$600,000 = $400,000 + X
X = $200,000

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SBA Center 2021-2022 1st - Accounting
Exercise (5)
Indicate whether each of the following items is an asset (A). Liabilities (L), or part of Owner's equity
(OE).
_____ (a) Accounts receivab ______ (d) Supplies
______ (b)Salaries and wages Payable ______ (e) Owner's capital
______ (c) Equipment ______ (f) Notes payable
Solution

A (a) Accounts receivable A (d) Supplies

L (b) Salaries and wages payable OE (e) Owner’s capital
A (c) Equipment L (f) Notes payable

‫ دي من الملزمه التانيه اللي فيها اسئله الكتاب‬exercise ‫دلوقتي ياوالد اتفضلوا حلو ال‬

Please solve these exercises

Exercise (1- 2 ),(1- 5 )

‫مكتبة اشرقت‬

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SBA Center 2021-2022 1st - Accounting

Transaction Analysis
Example ( 1)

TRANSACTION ANALYSIS

Marc Doucet decides to open a computer

programming service.

BANK

Softbyt
e

TRANSACTION ANALYSIS
TRANSACTION 1
On September 1, he invests $15,000 cash in the
business, which he names Softbyte.

Trans. # Assets =
Liabilities + Owner's Equity
Accounts M. Doucet,
Cash Supplies Equipment Payable Capital
(1) 15,000 = 15,000 Investment

There is an increase in the asset Cash, $15,000, and

an equal increase in the owner’s equity, M. Doucet,
Capital, $15,000.

‫ وخلي بالك انت محاسب عند الشركه وماسك دفاتر الشركه‬,‫استثمر فلوس عشان يبدا الشركه‬owner ‫ال‬
‫يبقي الكاش اللي في خزنه الشركه زاد وفي نفس الوقت الزم نشكر صاحب الشركه ونقوله ان راس مال حضرتك في الشركه زاد‬
increase Capital & increase cash

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SBA Center 2021-2022 1st - Accounting

asset ‫ وفي نفس الوقت الكمبيوتر هتزيد وده اصال‬, ‫ يبقي الكاش هيقل من الخزنه‬, ‫ كاش‬7000 ‫الشركه اشترت جهاز كمبيوتر ودفعت‬
increase equipment & decrease cash

TRANSACTION ANALYSIS
TRANSACTION 3
Softbyte purchases computer paper and supplies expected to last
several months from Chuah Supply Company for $1,600 on account.

Trans. # Assets = Liabilities + Owner's Equity

Accounts M. Doucet,
Cash Supplies Equipment Payable Capital
Balance 8,000 7,000 15,000
(3) 1,600 1,600
Balance 8,000 + 1,600 + 7,000 = 1,600 + 15,000

The asset Supplies is increased $1,600, and the liability

Accounts Payable is increased by the same amount.

‫الشركه اشترت معدات علي الحساب(مدفعتش فلوس) معناها ان كده الديون اللي عليا زادت الن مدفعتش ثمن اللي اشتريته واالصول‬
‫زادت الن اشتريت معدات وبكده المعدات زادت عندي في الشركه‬
increase supplies & increase Account payable ( A\P)

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SBA Center 2021-2022 1st - Accounting

TRANSACTION ANALYSIS
TRANSACTION 4
Softbyte receives $1,200 cash from customers for
programming services it has provided.

Trans. # Assets = Liabilities + Owner's Equity

Accounts M. Doucet,
Cash Supplies Equipment Payable Capital
Balance 8,000 1,600 7,000 1,600 15,000
(4) 1,200 1,200 Service Revenue
Balance 9,200 + 1,600 + 7,000 = 1,600 + 16,200

Cash is increased $1,200, and

M. Doucet, Capital is increased $1,200.

revenue ‫ واحنا عملنا خدمه لعميل يبقي ده ايراد لينا‬, ‫ كاش مقابل خدمات عملناها لعميل يبقي ساعتها الكاش يزيد‬1200 ‫اسلمنا‬
owner‫وااليرادات بتزود راس المال بتاع ال‬
increase cash & increase capital

TRANSACTION ANALYSIS
TRANSACTION 5
Softbyte receives a bill for $250 for advertising its business
but pays the bill on a later date.

Trans. # Assets =
= Liabilities +
+ Owner's
Owner's Equity
Accounts M.
M. Doucet,
Cash Supplies Equipment Payable Capital
Balance 9,200
9,200 + 1,600
1,600 + 7,000
7,000 =
= 1,600
1,600 + + 16,200
16,200
(5) 250 (250) Advertising Expense
Balance 9,200 1,600 7,000 1,850 15,950

Accounts Payable is increased $250, and M.

Doucet, Capital is decreased $250.
‫ الن الفاتوره دليل‬,‫معناها اننا جالنا فاتوره ومعني ان تجيلك فاتوره يااستاذ ان سيادتك تخلي عندك دم ودي ديون عليك والزم تتدفعها‬
‫ والمصروفات بتقلل راس المال‬expense ‫ طيب دي فاتوره ايه؟ اعالنات يبفي كده ده مصروف‬, ‫علي انك مديون لحد‬
decrease capital & increase liabilities (A\P)

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SBA Center 2021-2022 1st - Accounting

TRANSACTION ANALYSIS
TRANSACTION 6
Softbyte provides programming services of $3,500 for
customers and receives cash of $1,500, with the balance
payable on account.
Trans.
Trans. #
# Assets =
= Liabilities
Liabilities +
+ Owner's
Owner's Equity
Equity
Account
Account Accounts
Accounts M.
M. Doucet,
Doucet,
Cash
Cash Receivable
Receivable Supplies
Supplies Equipment
Equipment Payable
Payable Capital
Capital
Balance
Balance 9,200
9,200 +
+ 00 +
+ 1,600
1,600 +
+ 7,000
7,000 =
= 1,850
1,850 15,950
15,950
(6) 1,500 2,000 3,500 Service Revenue
Balance 10,700 2,000 1,600 7,000 1,850 19,450

Cash is increased $1,500; Accounts Receivable is

increased $2,000; and M. Doucet, Capital is
increased $3,500.

! .......... ‫طبعا مستني الترجمه‬

‫ال ياحبيبي متتعودش علي كده انا عملتها لحضرتك في كام حاجه بس عشان سيادتك تتعود علي الموضوع شويه وتشيل الخوف اللي‬
‫ عايزك تبدأ تحل انت لوحدك وتترجم‬,‫جواك يامنيل لكن لو فضلت انا اترجملك كل حاج ه سيادتك مش هتتعلم اي حاجه وهتتعب في الكليه‬
‫ كمل ياحلو ياال‬, ‫ولو في اي حاجه تقدر ترجعلي في اى وقت‬

TRANSACTION ANALYSIS
TRANSACTION 7
Expenses paid in cash for September are store rent,
$600, salaries of employees, $900, and utilities, $200.

Trans. # Assets =
Liabilities + Owner's Equity
Account Accounts M. Doucet,
Cash Receivable Supplies Equipment Payable Capital
Balance 10,700 2,000 1,600 7,000 1,850 19,450
(7) (600) (600) Rent Exp.
(900) (900) Salaries Exp.
(200) (200) Utilities Exp.
Balance 9,000 + 2,000 + 1,600 + 7,000 = 1,850 + 17,750

Cash is decreased $1,700 and M. Doucet,

Capital is decreased the same amount.

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SBA Center 2021-2022 1st - Accounting

TRANSACTION ANALYSIS
TRANSACTION 8
Softbyte pays its advertising bill of $250 in cash.

Trans. # AccountAssets = Liabilities

Accounts + M. Doucet,
Owner's Equity
Cash Account
Receivable Supplies Equipment Accounts
Payable M.Capital
Doucet,
Balance Cash
9,000 Receivable
2,000 Supplies
1,600 Equipment
7,000 Payable
1,850 Capital
17,750
Balance 9,000 2,000 1,600 7,000 1,850 17,750
(8) (250) (250)
Balance 8,750 + 2,000 + 1,600 + 7,000 = 1,600 + 17,750

Cash is decreased $250 and Accounts

Payable is decreased the same amount.

TRANSACTION ANALYSIS
TRANSACTION 9
The sum of $600 in cash is received from customers who
have previously been billed for services in Transaction 6.

Trans. # Assets = Liabilities + Owner's Equity

Account Accounts M. Doucet,
Cash Receivable Supplies Equipment Payable Capital
Balance 8,750 + 2,000 + 1,600 + 7,000 = 1,600 + 17,750
(9) 600 (600)
Balance 9,350 + 1,400 + 1,600 + 7,000 = 1,600 + 17,750

Cash is increased $600 and Accounts

Receivable is decreased by the same amount.

‫مكتبة اشرقت‬
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 SBA Center 2021-2022 1st - Accounting

TRANSACTION ANALYSIS
TRANSACTION 10
Marc Doucet withdraws $1,300 in cash from
the business for his personal use.

#
Trans. # Assets =
= Liabilities
Liabilities +
+ Owner's
Owner's Equity
Account Accounts
Accounts M.
M. Doucet,
Doucet,
Cash
Cash Receivable Supplies Equipment
Equipment Payable
Payable Capital
Capital
Balance
Balance 9,350 1,400 1,600
1,600 7,000
7,000 1,600
1,600 17,750
17,750
(10) (1,300) (1,300) Doucet, Drawings
Balance 8,050 + 1,400 + 1,600 + 7,000 = 1,600 + 16,450

Cash is decreased $1,300 and M. Doucet,

Capital is decreased by the same amount.

Please solve these exercises

‫من ملزمه اسئله الكتاب‬

Exercise ( 1-6 ) ,(1-7) , (1-8 )

‫املكان بتاعنا جنب كبدة الفالح ميدان‬

‫العباسية‬
FINANCIAL STATEMENTS
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SBA Center 2021-2022 1st - Accounting

FINANCIAL STATEMENTS
After transactions are identified, recorded, and
summarized, four financial statements are prepared
from the summarized accounting data:
1. An income statement presents the revenues
and expenses and resulting net income or net loss of
a company for a specific period of time.
2. A statement of owner’s equity summarizes the
changes in owner’s equity for a specific period of
time.

SOFTBYTE
Income Statement
For the Month Ended September 30, 2002
Revenues
Service revenue $ 4,700
Expenses
Salaries expense $ 900
Rent expense 600
Advertising expense 250
Utilities expense 200
Total expenses 1,950
Net income $ 2,750

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SBA Center 2021-2022 1st - Accounting
SOFTBYTE
Statement of Owner's Equity
For the Month Ended September 30, 2002

M. Doucet, Capital, September 1 $ -

Add: Investments $ 15,000
Net income 2,750 17,750
$ 17,750
Less: Drawings 1,300
M. Doucet, Capital September 30 $ 16,450

SOFTBYTE
Balance Sheet
September 30, 2002
Assets
Cash $ 8,050
Accounts receivable 1,400
Supplies 1,600
Equipment 7,000
Total assets $ 18,050

Liabilities and Owner's Equity

Liabilities
Accounts payable $ 1,600
Owner's Equity
M. Doucet, Capital 16,450
Total liabilities and owner's equity $ 18,050

‫من ملزمه اسئله‬Please solve these exercises

‫الكتاب‬
Exercise ( 9,10,11,12,13,14,15,16)

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