A= L + SE
Assests = Liabilities + Shareholder Equitys (Revenues[gains], Expenses[losses, Dividends, Retained
Earnings, Share Capital [common shares preferred shares] if using IFRS A[other compensating income],
contributed surplus
All are in financial statements
Conceptual framework, Gap, ASPI – learn it
They do not contain debits and credits
Increasing
Decreasing
Increasing
Decreasing
Assets
DR
CR
SE
CR
DR
Dividends
DR
CR
Liability
CR
DR
Expenses
DR
CR
Revenue
CR
DR
ASPI - Income state or statement of income
Statement of changes in equity (Retained earnings)
Balance sheet
Statement of cashflows
IFRS – Income statement or Statement of comprehensive income
Statement of financial position
Statement of cashflows
Account cycle:
Transactional journal in general journal  post to general ledger, this will be creating a rolling total for
the account the journal is for.  unadjusted trial balance most liquid down to expense debit = credit 
adjust entries (accrual accounting)  adjusted trial balance is used to create the financial statements, 
Books prepared for next year, closing entries