Accounting rules and types of businesses

              Accounting Rules And Types of businesses

Accounting consist of five things which are used in every business or organization

·        Assets

·        Liabilities

·        Capital

·        Income

·        Expense

·        Drawing

Name	Increase	Decrease
Asset	Debit	credit
Liabilities	Credit	Debit
Income/revenue	Credit	Debit
Capital	Credit	Debit
Expense	Debit	Credit
Drawing	Debit	Credit

For example if asset drawing and expense  increase it means business asset drawing and expense increase when asset increase we can say its debit and when both are  decrease it also credit.

Types of Business

·        Sole propertireship

·        partnership

      Sole propertireship

                                 A person who runs business individually is known as sole propertireship

In that type of business owner have responsibility about loss and profit. It has powered about decision making. Example small business

Partnership

A business in which two or more then two owner is known as partnership. In this type of business partners makes decision about business . All profit and loss are equally distribute between the partners.