Accounting Principles and Accounting Equations:

Accounting is the language of business and their affairs of a business it is unit are made  understood to others as well as its information’s which has to be suitably recorded, classified, summarized and presented its results in last results and it  is make the convey the same meaning to all peoples in business. It has necessary that it should base on certain uniform scientifically laid down standards these standards are the termed as accounting principles. It is rules of actions where accounting records his transactions. Therefore, Equation is a dual aspect they may be stated as “for every debit, there is a credit”. Every transaction has same extent amount this concept may also called Accounting equation. All transactions points of time assets of entity both are same and equal and there sum of properties are equal and it is owned by the business. This formula is known as accounting equation,

ASSET = OWNER,S EQUITY

        OR  
ASSET = LIABILITIES