accounting-basicslisted

# Accounting Basics Ground rules for recording business transactions correctly before any financial statement is produced. ## Double-Entry Rules * **Debit left, credit right**; every transaction is recorded in pairs (balanced journal entries). * Assets & expenses: increase on the debit side, decrease on the credit side. Liabilities, equity & revenue: increase on the credit side, decrease on the debit side. * Fundamental equation: **Assets = Liabilities + Equity** — always maintained after every journal entry. * Source documents (receipts, invoices, notes) must exist before a journal entry is made — no document, no journal. ## Accrual vs Cash Basis * **Accrual**: revenue is recognized when the right arises, expenses when the obligation arises — not when cash moves (SAK EMKM is accrual-based). * **Cash basis**: recognized when cash is received/paid — only for simple internal records, not for official reports. ## Scope & Safety * **Use for**: recording SME daily transactions, preparing data before it is compiled into financial statements. * **Do not use for**: a substitute for accountant/public accountant services; preparing SPT returns without validation (see tax-payroll-id plugin). * SMEs with turnover below the SAK EMKM threshold may prepare EMKM-based financial statements — SAK EMKM is not positive law; an accountant is required for audit opinions. * Accounting policies (inventory method, depreciation) must be consistent across periods. ## Worked Example Input: "Purchas