ACCOUNTING INFORMATION SYSTEMS BASIC ACCOUNTING EQUATION ACCOUNTING DEFINITIONS

ACCOUNTING INFORMATION SYSTEMS & BASIC ACCOUNTING EQUATION

ACCOUNTING DEFINITIONS American Accounting Association (AAA) defines accounting as follows: Accounting is a process of identifying, measuring and communicating economic information as a basis for consideration and decision by the users of the financial information. Based on the accounting information can be summarized as follows: 1. That accounting is a process that ultimately dalah product information, including financial statements. 2. That the information generated from the process can be used for decision making for users.

ACCOUNTING INFORMATION USERS Party Intern planning, Control Supervision, and Evaluating the performance of the company Party Ekstern The owner of the company (investor). Creditor Government. Employee Community

Stages in providing accounting information to the user

QUALITY OF ACCOUNTING INFORMATION Understandability Consistency Comparability Relevance Reliability

BASIC ACCOUNTING PRINCIPLES Historical value. Full disclosure. Recording accounting transactions using the following four principles: Income-Expense matching. Revenue Recognition.

the fields of Accounting Financial Accounting • Financial accounting is a branch of accounting firm focusing on transaction records and periodically present in the financial statements. Auditing • Inspection (auditing) is the branch of accounting test and examine freely the truth and fairness of the statement authors of the report, which is the responsibility of the authors of the report. Cost Accounting Management Accounting • Cost accounting is a special branch of accounting that focuses its activities on the recording and presentation of information on operational costs. • Management accounting is a branch of accounting that specializes in the development and interpretation of accounting information to assist management in running the company.

Tax Accounting • Task accountant in accounting taxation, among others, in charge of implementing the tax laws, tax planning (tax planning), implementation of tax administration, or represent the company as a taxpayer before the IRS. International Accounting • International accounting field of accounting is to be applied to the company with the scope of activity covering more than one state(multinational business organizations). Non-Profit Accounting • Accounting for nonprofit organizations is the accounting field that specifically apply to organizations where the activity aims not for profit, such as charities and educational institutions.

Government Accounting • Government accounting is the accounting field that specifically apply to government agencies. Accounting System • The accounting system is the field of accounting that focuses its activities on the manufacture of the accounting system. The accounting system is designed to control the company's accounting practices internally, creating an efficient flow of financial reports, and present useful information for the users of accounting information reliably. Budgetary Accounting • Budget accounting is accounting field that focuses its activities on the planning activities of the company. The result of such planning becomes a comparison between the planned budget and the work achieved.

ACCOUNTING PROFESSION ETHICS Accountants and auditors often face the problem of an ethical dilemma. When making financial reports to borrow money from banks, accountants are required to prepare financial statements to conform to the company's orders. The financial statements describe the company's financial condition as if healthy, so that borrowing by these companies was granted by the bank. On the one hand, the accountant must uphold the ethics of the accounting profession, but on the other hand is a part accountant / karyawandari a company. Trust the people, governments, and businesses on reports of auditors for the purpose of decision-making is not only determined by its expertise, but also by its independence and moral integrity of accountants. The actions carried out by accountants should be based on applicable standards.

CREDIT AND DEBIT MECHANISM BALANCE NORMAL RULES H U M P B K D Saldo Normal D K K

FORMULA APPLYING ACCOUNTING EQUATION The relationship between wealth and property rights or claims that may be expressed in the form of the accounting equation (accounting equation) and formulated as follows: Assets = Liabilities + Equity Rights or claims on assets or equity owner of the company is a residue or remainder of assets reduced by the liabilities, as shown by the following equation:

• The company's goal is to increase assets and equity through the income (revenues), which is the amount obtained by handing over the goods and services to the customers'. • Revenue will increase the company's equity as earnings add asset but does not add liability. • Investment owner also adds to the company's equity. • Meanwhile, taking the owner or prive (withdrawals) and expenses (expense) will reduce equity. • Decision owner or prive is the opposite of the owner's investment. • The burdens of a decrease in equity in connection with the activities of

Example: Transactions that occur on Lily Salon during the first month during the accounting period. qtransactions 1 Miss Lily put up capital of Rp. 7, 500, 000. the effect of this transaction is to increase the company's assets in the form of "Cash" on the left side and the same amount in the form of "Capital Lily". Aktiva = Ekuitas Kas = Ekuitas + 7. 500

qtransactions 2 Salon Lily bought a plot of land for construction of office buildings in future Rp. 5, 000 cash. Miss Lily's for a few months would plan to rent the office and salon equipment. As a result of this transaction accounting by the following equation. Aktiva = Ekuitas Kas + Tanah = Modal Lily 7. 500 5. 000 + 5000 2. 500 + 5000 = 7. 500

qtransactions 3 During this month, Salon Lily buy equipment on credit amounting to Rp. 675, 000. equipment to be used in the salon business, including elements of the load prepaid (prepaid expense) and obligations referred to in trade payables (accounts payable). The influence of this transaction are as follows. Kas 2. 500 Aktiva Perlengkapan + + = Kewajiban = Hutang Dagang Tanah 5. 000 7. 500 +675 2. 500 + + Ekuitas + Modal Nona Lily 675 + 5. 000 = 675 + 7500

qtransactions 4 Miss Lily earn services revenue (service revenue) from customers. During the first month of running a business, Miss Lily salon services earn revenue of Rp. 3, 750, 000. This makes the acquisition of revenue Lily Salon effort into growing, as demonstrated by the increase in total assets and total equity. Kas Aktiva Perlengkapan + 2. 500 = Kewajiban + Tanah +675 + Ekuitas = Hutang Dagang 5. 000 + Modal Nona Lily +675 7. 500 +3750 6. 250 + 675 + 5. 000 = Pendapatan Jasa 675 + 11. 250

q transaction 5 Miss Lily pay staff salaries amounting to Rp. 1. 0625 million; rent office Rp. 400, 000; electricity and telephone bills amounting to Rp. 225, 000; and miscellaneous expenses Rp. 137, 500. the effect on the accounting equation as follows. Kas 6. 250 (1. 825) 4. 425 + + Aktiva Perlengkapan 675 + + Tanah 5. 000 = Kewajiban = Hutang Dagang 675 = 675 + Ekuitas + Modal Nona Lily 11. 250 (1. 062, 5) + Beban Gaji (400) Beban Sewa Kantor (225) Beban Listrik dan Telepon (137, 5) Beban rupa-rupa 9. 425

q transactions 6 During this month, Salon Lily pay trade payables amounting to Rp. 475. 000, 00. Effect on the accounting equation is as follows. Kas + Aktiva Perlengkapan + Tanah = Kewajiban + Ekuitas = Hutang Dagang + Modal Nona Lily 4. 425 675 5. 000 675 9. 425 (475) 200 + 3. 950 + 675 + 5. 000 9. 425

q transactions 7 The fixtures were used during the current month is Rp. 400, 000. This transaction expenses for which will reduce the equity and assets of the company. The influence of this transaction are as follows. Kas + Aktiva Perlengkapan + Tanah = Kewajiban + Ekuitas = Hutang Dagang + Modal Nona Lily 3. 950 675 5. 000 200 9. 425 (400) 200 + 3. 950 + 275 + 5. 000 Beban perlengkapan 9. 025

q transactions 8 At the end of the month, Miss Lily take the money Rp. 1, 000 of the company for personal purposes. This transaction resulted in a decrease in cash and Miss Lily's capital (equity). For companies, making money is not a burden and so-called prive. The influence of this decision is as follows. Aktiva Kas + Perlengkapan + Tanah = Kewajiban + Ekuitas = Hutang Dagang + Modal Nona Lily 3. 950 275 5. 000 200 9. 025 (1. 000) 200 + 2. 950 + 275 + 5. 000 Prive 8. 025

Based illustration Lily Salon can note three important things that apply to all forms and types of businesses, among others: The influence of each transaction indicated by the increase or decrease in one or more of the elements of the accounting equation. This influence does not disturb the balance of the accounting equation. Equity capital will increase if there is an increase in the owner's investment and income (revenue). Conversely, equity will be reduced if there is a decision by the owner (prive) and load (expense).

EFFECT DUE TO THE ACCOUNTING EQUATION IN SALON LILY Kas 7. 500 (1) (2) (3) (4) (5) (6) (7) (8) Saldo Saldo (5. 000) 2. 500 3. 750 6. 250 (1. 825) 4. 425 (475) 3. 950 (1. 000) 2. 950 + Aktiva Perlengkapan Tanah = Kewajiban = Hutang Dagang 675 5. 000 5000 5. 000 675 5. 000 675 5. 000 675 (400) 275 5. 000 675 (475) 200 5. 000 275 5. 000 200 + + Ekuitas + Modal Nona Lily 7. 500 Investasi Nona Lily 7. 500 3. 750 Pendapatan Jasa 11. 250 (1. 062, 5) Beban Gaji (400) Beban Sewa Kantor (225) Beban Listrik dan Telepon (137, 5) Beban rupa-rupa 9. 425 (400) Beban Perlengkapan 9. 025 (1. 000) Prive 8. 025

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