Accounting and Life
Accounting and Life
Paula Grace L. Emboltorio, BSA 1-5
The first semester is nearly ending and our final exams are coming soon. We have already encountered a lot of challenges, from floods on the roads to surprise exams from our professors. We have been surviving our course for more than five months now. We are closest to finishing our lessons but have we learned enough to apply accounting lessons into our life? Have we even thought that we can turn accounting lessons into life lessons?
The first lesson below is the standard formula of accounting. It is your main guide in making your own trial balance. This equation does not ensure the accuracy of the accounts but it may help you in knowing the equality of the debits and credits.
The accounting equation:
Assets = Liabilities + Owner’s Equity
This equation may also be applied in real life by relating yourself to the accounting elements. This shows that for every asset you possess, there is an affiliated liability or owner’s equity. For example, you are intelligent. Therefore, your intelligence itself is your asset and at the same time, your owner’s equity. It is considered as an owner’s equity because your investment is the time you spent studying. Another example, you are beautiful. Therefore, your beauty is an asset and also, a liability. It is a liability because a lot of people may get insecure and you’re supposed to handle it.
The following lesson below is the main rule accountants and accountant wanna-be’s follow when entering entries in the journal and the ledger. This rule may not change for it has already been set and followed by a lot of people. A journal entry is not complete if only one side has an entry, there is supposed to be entries in both sides.
The general rule of debit and credit: For every entry in the debit side, there is a matching entry in the credit side.
This rule is close to karma that for every good/bad deed you have done to others you will receive the same. If you do something
Paula Grace L. Emboltorio, BSA 1-5
The first semester is nearly ending and our final exams are coming soon. We have already encountered a lot of challenges, from floods on the roads to surprise exams from our professors. We have been surviving our course for more than five months now. We are closest to finishing our lessons but have we learned enough to apply accounting lessons into our life? Have we even thought that we can turn accounting lessons into life lessons?
The first lesson below is the standard formula of accounting. It is your main guide in making your own trial balance. This equation does not ensure the accuracy of the accounts but it may help you in knowing the equality of the debits and credits.
The accounting equation:
Assets = Liabilities + Owner’s Equity
This equation may also be applied in real life by relating yourself to the accounting elements. This shows that for every asset you possess, there is an affiliated liability or owner’s equity. For example, you are intelligent. Therefore, your intelligence itself is your asset and at the same time, your owner’s equity. It is considered as an owner’s equity because your investment is the time you spent studying. Another example, you are beautiful. Therefore, your beauty is an asset and also, a liability. It is a liability because a lot of people may get insecure and you’re supposed to handle it.
The following lesson below is the main rule accountants and accountant wanna-be’s follow when entering entries in the journal and the ledger. This rule may not change for it has already been set and followed by a lot of people. A journal entry is not complete if only one side has an entry, there is supposed to be entries in both sides.
The general rule of debit and credit: For every entry in the debit side, there is a matching entry in the credit side.
This rule is close to karma that for every good/bad deed you have done to others you will receive the same. If you do something