Скачать или смотреть Part 2 📘 Asset Ki Entry Kaise Karte Hain? | Journal Entry for Assets

Assets are resources owned or controlled by a business that are expected to bring future economic benefits. They can be tangible (cash, inventory, buildings, machinery) or intangible (patents, trademarks, goodwill). In accounting, assets are recorded on the balance sheet and are used to generate revenue, support operations, or provide other long-term value. They are classified based on liquidity and utility, such as current assets (cash, accounts receivable, inventory) and non-current/fixed assets (land, buildings, machinery, long-term investments). This distinction helps in assessing the firm’s liquidity, solvency, and capital structure. Understanding assets is foundational for CBSE Class 11 and Class 12 accounts and business studies topics like depreciation, amortization, and asset valuation.Key features of assetsEconomic value: Each asset has a determinable monetary value that can be realized, either through use in operations or sale.Ownership/control: The entity must have rights to the asset, either through ownership or contractual control.Future benefits: Assets are expected to contribute to future cash flows or cost savings.Measurability: Assets can be quantified in monetary terms and recorded in financial statements.Transferability: Many assets can be transferred or exchanged, though some may be specialized or non-transferable.Depreciation/amortization (for tangible/intangible assets): Most assets lose value over time and are expensed over their useful life.Types of assetsCurrent assets: Cash and cash equivalents, accounts receivable, inventories, short-term investments.Non-current (fixed) assets: Land, buildings, plant and equipment, vehicles, long-term investments.Intangible assets: Patents, copyrights, trademarks, goodwill, software.Financial assets: Investments, loans receivable, equity instruments.Deferred assets: Prepaid expenses and other amounts paid in advance for future periods.How assets affect financial statementsOn the balance sheet, assets equal the sum of all resources the business owns.On the income statement, asset usage (through depreciation, amortization, or impairment) affects expenses and net income over time.Proper asset classification aids in financial analysis, liquidity assessment, and decision-making for stakeholders.Example journal entries (typical CBSE-style entries)Purchase of inventory with cash:
Debit Inventory (Asset)
Credit Cash (Asset)Purchase of machinery on credit:
Debit Machinery (Asset)
Credit Accounts Payable (Liability)Recording depreciation (monthly/annual):
Debit Depreciation Expense (Expense)
Credit Accumulated Depreciation (Asset contra)Prepaid insurance:
Debit Prepaid Insurance (Asset)
Credit Cash/Bank (Asset)Study tips for examsMemorize the classification: current vs non-current, tangible vs intangible.Practice common asset-related entries and ensure debits equal credits.Understand how depreciation affects both assets and expenses.Relate assets to examples from real-world businesses to solidify understanding.