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ELEMENTS OF FINANCIAL STATEMENT:                                 In this article, we will discuss the some key basic elements of Financial Statement and its accounting treatment. Some of the key basic elements are                                                 i) Income / Revenue                                                 ii) Expenses                                                iii) Assets                                                iv) Liabilities                                                v) Equity / Capital INCOME:                            The context of income may differ on the basis of Economic, Financial, Taxation and Accounting. In the point of Accounting, Income means amount or cash received for the exchange of goods or service. Further it can be divided into direct income and Indirect Income.                Direct Income:                                  Direct income means all the income earned from the core business activity like sales income and service in

Introduction                                                           All business entities must present it's financial statements to all its stakeholders. The information provided in the financial statement must be accurate and present in a true and fare picture of the entity. For this presentation, it must account all its transactions. Since economic entities are compared to understand their financial status, there has to be uniformity in accounting. To bring that uniformity, the golden rules of accounting will help us. These rules form the very basis of passing journal entries which is the first step of accounting and book keeping.  Types of Accounts:                             Let's discuss the three types of accounts in the Financial statement.  1. Personal Account:                         Basically, a personal account of a General ledger related to people, firms, organization, association and companies. It can be divided into three sub categories:           i) Natural p