Accounting Basic

Hello readers, in this series I would like to invite you to learn together about basic accounting. Surely many of you have an interest in this discipline. The reason is, an accountant is always needed by all companies, both trading, service and manufacturing companies.

Accountant’s jobdesk in the company is to ensure that all the flow of financial movements is recorded physically into a financial report, which will later be presented to stakeholders for further decision making.

🔗 Knowing Accounting

Various sources explain what accounting is, such American Accounting Association which defines accounting as the process of identifying, measuring and reporting economic information to enable clear and assertive judgment and decision-making for those who use that information.

🔗 Basic Terminology of Debit and Credit

The terms Debit and Kredit must be encountered when studying accounting, and keep in mind that these two terms do not mean an increase or decrease but to describe where journal entries are made. The left side means debiting the account, while the right side means crediting the account. An account can be said to have a debit balance if the debit amount exceeds the credit amount, and vice versa.

The following is the basic terminology of debit and credit.

🔗 Basic Accounting Equations

In a paired system, for each debit there must be a credit and vice versa, so that when you compare the debit and credit side of the accounting report it will be balanced, so the basic equation formula will be obtained as follows.

Assets = Liability + Stockholders Equity

Then to make it easier for you later in making financial reports, the following is the accounting cycle from the beginning of the transaction to the making of financial reports.

🔗 Making Journal

Now let’s make a simple example of making a journal which we illustrate that PT Color Ceria has conducted transactions as follows.

The following is the journal entry for the above transaction.

🔗 Posting

Now let’s illustrate the transfer (posting) from journal to ledger.

1. September, 1: 
   Shareholders invested 100,000 cash in the underpants company 
   known as Color Ceria's Advertising.

Ayat Jurnal:

Posting:

2. September, 1: 
   Color Ceria Advertising provided office supplies worth 50,000 
   by signing a 3-month, 12% bills for 50,000.

Ayat Jurnal:

Posting:

3. September, 2: 
   Color Ceria Advertising received a down payment of 12,000 from PT Lariso for 
   advertising services which are expected to be completed on December 31st.

Ayat Jurnal:

Posting:

4. September, 3: 
   Color Ceria Advertising paid the office rent in cash 
   for September of 9,000.

Ayat Jurnal:

Posting:

5. September, 4: 
   Color Ceria Advertising pays an insurance policy of 6,000 
   which will mature on August 30 next year.

Ayat Jurnal:

Posting:

6. September, 5: 
   Color Ceria Advertising buys creative equipment which is estimated 
   to be valid for 3 months for 25,000 on credit.

Ayat Jurnal:

Posting:

7. September, 20: 
   Color Ceria Advertising announced and paid a cash dividend 
   of 5,000 to shareholders.

Ayat Jurnal:

Posting:

8. September, 26: 
   Color Ceria Advertising pays an employee salary of 40,000 
   for the employee's work for a month.

Ayat Jurnal:

Posting:

9. September, 30: 
   Color Ceria Advertising received cash of 28,000 and charged 
   Sadean's Company 72,000 for advertising services worth 100,000.

Ayat Jurnal:

Posting: