Title أد.سعاد business الفرقة الأولى .pdf ✅

1 Business Studies (Accounting) Prof. Dr. Soad Hassan Khader
2 Chapter 1 The Double Entry System of Book-Keeping Aims of the chapter: To introduce the concept of double entry To consider the business entity convention To look at the accounting equation

4 understand how to process data in such a way that the output of a computer is meaningful. The same data can, of course, be processed manually to give exactly the same end product - but not nearly so quickly. The aim of this book is to show the reader HOW business transactions are recorded to give at least the minimum amount of information required by the owner of a business and WHY those transactions are recorded in that particular way. One of the fundamental conventions of accounting is the business entity convention. This means that the firm or the business is dealt with completely separately from any other personal dealings of the owner(s). All, and only, the transactions of the firm pass through the accounting system. Sometimes this is a legal necessity, as with a limited company. But in any case it is always much more convenient and good business practice to keep the transactions of the firm separate from those of its owner(s). The simplest model of the firm or business is the sole trader (i.e. the proprietor/manager) buying and selling goods with the intention of making a profit. An example of this type of trader might be the local newsagent or grocer, or possibly a wholesaler of goods. Imagine then a sole trader commencing business with L.E. 70,000 in a separate business bank account. He is using a separate business bank account because he very sensibly consulted an accountant before commencing business and was put wise to the business entity concept . His overall position could be shown initially thus: