#accounting #economics #buisness #finance 1. Hiika Double Entry/ Meaning of Double Entry/:- Double Entry is a system of accounting in which every income and expense is recorded in two places when it is entered Double Entry jechuun sirna herregaa keessatti galii fi baasiin hundi yeroo galmaa’u bakka lama irratti galmaa’a jechuudha. Transaction tokko yeroo Galmeessinu: Account lamatu tuqama (At least two accounts are affected) Kana jechuun Debit tokko + Credit tokko (ykn isaa ol) Seerri guddaan: Debit = Credit ta’uu qaba Kana jechuun: • Wantii tokko yoo dabalu (Increase) • Wantii biraa immoo ni hir’ata (Decrease) Yaadadhu: “Every transaction has two sides” 2. Bu’uura isaa (Accounting Rules) In accounting, there are 5 basic elements : /Herrega keessatti wantoonni 5 ijoo bu’uuraati/ 1. Asset (Qabeenya) 2. Liability (Liabiliti / Kaffaltii) 3. Capital (Abbaa qabeenyaa) 4. Expense (Baasii) 5. Revenue (Galii) Mee Fakkeenyota haa ilaallu 1. Meeshaa wayii qarshiidhaan bitte/ Purchase of goods for cash/ -Cash (qarshii) xiqqaata = Asset hir’ate -Meeshaa (asset) dabala = Asset Dabale Entry: Meeshaa (Asset) → Debit Cash → Credit 2. Meeshaa wayii Duubeedhaan bitte / Purchase on credit (Accounts Payable) Equepment( Meeshaan) =Asset Dabala Account Payable( Idaan) Credit Dabala Entry: Asset → Debit Account Payable → Credit 3. Dhaabbanni kee Tajaajila tokko qaama biraaf kennee qarshii argatte/ Service provided and cash received/ Cash ( Maallaqi) Asset Dabale Income( Revenue)/Galiin / kee Equity Dabale Entry: Cash → Debit Revenue → Credit 4. Mindaa kaffalte/ Salary paid/ Entry: Salary Expense → Debit Cash → Credit 5.Dhaabbannikee Qarshii wayii Bank ykn Namarraa liqeeffate / Loan received from bank or person/ Entry: Cash → Debit Loan Payable → Credit HUBADHU Asset fi Expense → Debit dabala Liability, Equity, Revenue → Credit dabala Mee Ammaa Entry fi Journal( Galmeeffama Herreegaa) walitti finnee haaa hojjennu (Journal Entries (Practice Examples) 1- Meeshaa wayii Qar. 3000 cashiin bitame Analysis: • Meeshaa (Asset) dabale → Debit • Cash (Asset) hir’ate → Credit Journal Entry: Dr Inventory (Meeshaa) 3000 Cr Cash 3000 Fakkeenya 2 Maallaqa liqiidhaan sirra ture( liability/(Acc payable) Qar.1000 kaffalame Analysis: • Liability hir’ate → Debit • Cash hir’ate → Credit Journal: Dr Accounts Payable 1000 Cr Cash 1000 ________________________________________ Fakkeenya 3 Tajaajila gurgurame $500 cashiin Analysis: • Cash dabale → Debit • Revenue dabale → Credit Journal: Dr Cash 500 Cr Revenue 500 - @db.accountant