Accountancy is a process of recording, classifying, Summarising, analysing and reporting of the financial transactions, which are measured in monetary terms.
Asset= liability+Equity
Asset: what any entity owns
Liability: what any entity owes.
Equity: The capital that any entity gets.
Assets are of two types:
Fixed assets, current assets.
Fixed assets are of 2 types.
Tangible and intangible.
Tangible are those which we can touch, feel and etc.
Example: Land, furniture etc.
Intangible assets are those which cannot be touched, feel but has a significant market.
Example: Copyright, patent, goodwill and etc.