The Fundamentals of Accounting: accounting records, summarises and reports a business's financial transactions.
The accounting equation
$\text{Assets} = \text{Capital} + \text{Liabilities}$
Assets are what the business owns; liabilities are what it owes; capital is the owner's investment. If assets are RM50,000 and liabilities RM20,000, capital is RM30,000.
Remember
- Assets = Capital + Liabilities.
- Book-keeping records transactions; accounting analyses and reports them.