1. Summary of Theory of Accounting - Basic Rules in 2 pages
The main purpose of fiscal accounting is to determine the company's results in order to
calculate tax on profits. Throughout the year, purchases, sales and other accounting movements
are being recorded. Once the accounting movements have been registered we can print several
reports.
The main accounting reports are:
- Journal - provides information on the daily accounting movements of the company's activity
- Ledger (Account statement) - provides information about company accounts. An account
statement for each account. In each account we have information on a topic. Example: Cash,
bank deposits, customers, suppliers, goods, etc.
- Balance sheet - provides summary information about the balance of each account. Usually
monthly.
- Profit and Loss Statement - provides information about the company's results
- Balance Sheet - provides information on the assets, liabilities and net worth of the company.
In the Accounting are registered where the funds of the company were applied and what was its
origin.
Application of Funds Origin of Funds
Properties
Equipments
Goods
Customer Debt
Bank deposits
Cash
Share capital
Results
Reservations
Bank loans
Dedt to Suppliers
In the Balance Sheet, Liabilities and Net Assets tell us the origin of the funds invested in the
company. The Asset tells us where the company's funds were invested.
Balance
Asset (Application of Funds) Liabilities and Net Assets (Origin of Funds)
Investments
Tangibles (buildings and machines)
Intangibles (trademarks and patents)
Inventories
Raw materials, commodities
And finished products
Bills to receive
Customers
Net financial means
Equity
Shareholders
Reservations
Results
Bills to pay
Providers
Banks
state
State

2. Bank deposits
Cashier
In a simplified way we can state that:
In active is represented everything that belongs to our company, as well as everything that is
owed to our company.
In the Liabilities are represented the debts of our company, these debts are usually to banks,
suppliers, state and other companies.
In the Net Position is represented the capital that the partners placed in the company added to
the results that our company has had over the years.
In accordance with the rules for moving accounts:
- Assets - Increases by the movements to debt and decreases by the movements on credit.
- Liabilities - Decreases by movements to debt and increases by movements on credit.
- Net Situation - Decreases due to movements to debt and increases by movements in credit.-
Rendimentos - Aumentam pelos movimentos a créditos
- Expenses - Increase by movements of debits
Debit Credit
Active Increases Decreases
Passive Decreases Increases
Net Income Decreases Increases
Expenses Increases
Recipes Increases
According to the logic of accounting:
- The Active, which is positioned on the left side, increases by the flow rate, which is also
positioned on the left side.
- The Liabilities, which positions on the right side, increase by credit, which also positions on
the right side.

3. - The Net Position, which is positioned on the right side, increases by credit, which is also
positioned on the right side.
Under the double entry rule, in any accounting movement, the value of the total debited shall
be equal to the total amount written off.
Consequently, according to the fundamental accounting equation in the Balance Sheet the
Asset is equal to the sum of the Liabilities with the Net Situation.
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