The value of asset is not fixed.

Asset life is longer than one accounting period.

The value of asset is fixed.

Debt that must be paid off after one accounting period.

Debt that must be paid off within one accounting period

Cash or assets brought into the business by the owner.

Cash/goods/assets taken by the owner for personal use

Cash/goods/assets taken by the owner for personal use can cause the owner's equity increase.

Cash/goods/assets taken by the owner for personal use can cause the reduction in owner's equity.

Owner’s equity is increased if business generates a profit.

If loss is obtained, the owner’s equity will be decreased.

Income are the gross increase in owner’s equity resulting from business activities through the selling of goods and providing business.

It is result from the purchase of goods, employer salaries and wages, freight charges and other expenses.

Assets owned by a business for the purpose of selling to the customer.

Purchase of goods by cash/bank or on credit

Sale of goods by cash/bank or on credit

Returns inwards/ Sales returns

Returns outwards/ Purchase returns

Asset accounts have DEBIT balance

Liability accounts have DEBIT balance.

A revenue account has a DEBIT balance

An expense account has a DEBIT balance.

Equity accounts have a CREDIT balance except drawings account has DEBIT balance.