Friday, July 27, 2007

Haye Accounting

My latest job requires me to get acquainted with Accounting and its principles leading up to some advanced concepts too. Now for someone who has an engineering background, this is no easy task I tell you! In fact, the first few sessions were so boring, I almost fell asleep! :P … Thankfully, now I have started getting the hang of it a bit as some bull has made its way in me head if you know what I’m saying! :)

Two cheers for Accrual-based accounting apparently, it follows the US GAAP principle where as cash-based does not. Something to do with realizing revenue at the proper time. The real mind-boggling stuff for any accounting newbie is to learn when certain types of accounts are debited and when they are credited. Couldn't they just make one freaking rule for everything?! I guess not! Asset and expense accounts, apparently, are debited on increase and credited on decrease whereas liability, equity and revenue accounts are credited on increase and debited on decrease! You see my predicament? Now we talk of acquisitions and depreciations like it’s our jargon … uff … still needs some getting used to. More on it later.

6 comments:

Asma said...

Lolz ... well accounting's fun - just get familiar with the jargon and then it's so much of fun. Being an engineer, figures can't bore you or they are??

Happy going!

Razz said...

Thanks! I've been trying to get used to it and believe me it's not easy ... especially for someone who used to thank the heavens that I didn't take up accounting!

How ironic that I ended up working for a company that worked with accounting software! :P

M Shoaib Sheikh said...

So you are accounting for accounting actually :P

Irfan said...

hey hey dun blame your tools.... its as logical as 2+2=4... use your head.. try to find the direction of cash flow... things get debited and credited on this very basis!!

Jasim said...

accounting is interesting, and you be goood in figures !

bas kamal said...

i love accounting...
Being an engineer, figures can't bore you or they are??

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