Accounting is the part of recording, classifying and Summarizing financial transactions in the Preparation of Financial Statements.
Trial Balance is not Financial statement , it is a summary of all debit and credit transactions.
Classification of Accounts
Asset:
Properties and Investments which can be converted / Convertible to Cash (Balance Sheet Item).
Liability:
Amount Payable to Owners (Providers of Capital) and Creditors (Supplier of Material or Loan) (Balance Sheet Item).
Revenue / Income:
Amount Earned through Sales or any other Mode ( Profit and Loss Item or Income and Expenditure Item)
Expenses:
Amount incurred / spent or expenses to earn the income. ( Profit and Loss Item or Income and Expenditure Item)
Trial Balance is not Financial statement , it is a summary of all debit and credit transactions.
Classification of Accounts
Asset:
Properties and Investments which can be converted / Convertible to Cash (Balance Sheet Item).
Liability:
Amount Payable to Owners (Providers of Capital) and Creditors (Supplier of Material or Loan) (Balance Sheet Item).
Revenue / Income:
Amount Earned through Sales or any other Mode ( Profit and Loss Item or Income and Expenditure Item)
Expenses:
Amount incurred / spent or expenses to earn the income. ( Profit and Loss Item or Income and Expenditure Item)
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