My dear friends. Watch some of these videos. For me, this is one of the best accounting teachers I have come across. After watching the videos, you should be able to answer the respective questions.
1) Where does Accounting come from?
2) What are assets? List some examples?
3) What are liabilities? List some examples?
4) What is net worth?
5) Draft a balance sheet for your best friend.
1) What are banks asking for, when you apply for a loan?
2) What does A=L+E mean?
3) Draft a balance sheet for a bakery.
4) Example 1: The bakery sells a 100 pieces of bread (2,00 € each), which increases cash (200,00 €), how does this example effect your revenues (part of the profit and loss account (G&V), which is a sub-account of the equity account)? How would you book this transaction?
5) Example 2: For the insurance of the bakery, you pay the insurance company a fee of 100,00 € in cash. How does this effect your cash and how does this effect your insurance cost? How would you book this transaction.
6) Example 3: You want to pay back a loan to your bank (500,00), where you transfer the money from your bank account to reduce the loan. How do you book this transaction
Fondation of a company: Lemonade Stand