Accounting Solver

ACCOUNTING FOR LIVING 2

by ren on May 29th, 2008

I’ve always maintained that accounting is also for business. It’s concepts, relationships among accounts, system of balances are applicable in almost anything in life.

Accounting Solver presents a Balance Sheet for Living:

As in any Balance Sheet for business, Equity is what you start out with or put into the business and which constitute your Assets. Following the basic accounting equation: Assets - Liabilities = Equity, after you deduct your Liabilities from your Assets, what is left is what you get out of the business or what you actually own.

It’s the same case in life (or your Balance Sheet for Living), your Assets are what you start out with (or possess) and, after deducting your Liabilities, what is left is what you get out of life or your Equity.

image from Microsoft Clipart reconstructed by Ren Garcia

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POSTED IN: Accounting Concepts, Accounting for NonAccountants, Assets, Balance Sheets, Equity / Capital, Liabilities, Net Worth, Random Thoughts on Accounting