Income Statement(Chinese6.Profitandloss6001SalesRevenue6011InterestRevenue6111InvestmentIncome6301Non-operatingIncome6401CostOfSales6601 Selling Expense6602AdministrativeExpense6603FinancialExpense6711Non-operating expenditure6801Income Tax
Income Statement (Chinese) ◼ 6. Profit and loss ◼ 6001 Sales Revenue ◼ 6011 Interest Revenue ◼ 6111 Investment Income ◼ 6301 Non-operating Income ◼ 6401 Cost Of Sales ◼ 6601 Selling Expense ◼ 6602 Administrative Expense ◼ 6603 Financial Expense ◼ 6711 Non-operating expenditure ◼ 6801 Income Tax
2)T-accountAccount TitleCreditDebitTitle of AccountsidesideLeft sideRight sideDebit balanceCredit balanceDRRDifferencea7betweenthedebit side andMSthe credit side1
② T-account DR CR Left side Right side Title of Account Debit balance Credit balance Account Title Debit side Credit side Difference between the debit side and the credit side
Example 1CashCr.Dr.$60,000$50,0005002,000Bal.7,500
Example 1 Cash $60,000 $50,000 500 2,000 Bal. 7,500 Dr. Cr
Example 2Accounts PayableDr.Cr.$ 60,000$150,000100,00040,0002,000Bal.32,000
Example 2 Accounts Payable $ 60,000 100,000 $150,000 40,000 2,000 Bal. 32,000 Dr. Cr
II Double-entry SystemEach transaction has a dual effect on the equationAssetAnother assetLiabilityOwner's equity3AssetsLiabilitiesEquity
Ⅱ Double-entry System ◼ Each transaction has a dual effect on the equation. Assets Liabilities Equity ◼ Asset Another asset Liability Owner’s equity