Canadian accounting,
clearly explained.
A Canadian accounting reference, from recording business activity to understanding financial statements. Explore clear explanations, practical examples, and the reasoning behind IFRS and ASPE.
Scroll horizontally to see all columns.
| Account | Debit | Credit |
|---|---|---|
| Cash | 50,000 | |
| Common Shares | 50,000 |
50,000 Assets=0 Liabilities+50,000 Equity
Every entry records both sides of a change, so the accounting equation stays in balance. How the equation works
How the pieces connect
Accounting connects what happens in a business with the amounts in its financial statements.
Business activity
Understand what changed
Start with the event: what the business received, gave up, earned, spent, borrowed, or repaid—and how those changes keep a balanced relationship.
Accounting records
Record and update accounts
A journal entry is the dated record of an event. Entries build the running total in each account—a named category such as Cash or Rent Expense—and period-end adjustments update those totals before reports are prepared.
Financial reporting
Turn records into reports
Financial statements summarize performance (what the business earned and used), position (what it has and owes), the owners’ remaining interest, and cash movements.
Explore a subject
Go directly to the part of the accounts, statements, or Canadian reporting context you need.
Revenue and assets
How revenue is recognized and how resources used in the business are measured.
Liabilities and equity
How obligations, financing, contributed capital, and accumulated results are reported.
Income taxes
How tax for the current period and future tax consequences appear in the accounts.
Canadian reporting context
Where IFRS and ASPE can change recognition, measurement, presentation, or disclosure.