Its an expense

There are just a few basic rules to start.

1) Every transaction has a debit and a credit entry.

2) Debit the account that receives value and credit the account that gives value.

Once you debit an account, immediately look to see which accout gave value.

eg. If you bought a car for $20,000

The account that received value is the Motor Vehicle account because it received the value of a car worth $20,000. Debit Motor vehicles $20,000

You paid money for it so your bank account would have lost $20,000 value. (you would not ordinarily pay $20,000 in cash). Credit Bank $20,000

Always remember, do the debit and credit at the same time. Its less condusing and would allow for easier checking.

This is only an introduction to Double entry but the principle remains the same for more complex transactions.

Hope this was helpful. Also, POA is a practical subject, the more questions you do after each chapter, the better you will be at it.

machines, furniture, motor vehicle,buildings,lands any thing that has a long life value.

FIXED ASSETS ARE ASSETS THAT ARE IN THE BUSINESS FOR A LONG PERIOD OF TIME EXAMPLE BUILDING PREMISES MACHINERY AND FIXTURES AND FITTING YOU MUST ALSO PLACE THEM IN ORDER FROM THINGS THAT ARE HARD TO SELL OFF

BALANCE SHEET

1.FIXED ASSETS

LISTS THEM

2. CURRENT ASSETS

LISTS THEM

3. LESS CURRENTS LIABILITIES

LISTS THEM

4. FINANCED BY:
LONG TERM LIABILITIES

LOAN MORTGAGE
OWNERNS EQUITY
CAPITAL
ADD: NET PROFIT

LESS DRAWINGS

Another name for cost of stock sold is closing stock