DRUG BUST Alan Cassels
How do you calculate your net worth, the value of your company or your chequing account balance? You don’t have to be an accountant to understand that these amounts are determined by looking at both columns in the ledger – your assets and liabilities and your credit and debit. In Double-Entry accounting, your assets are listed on one side; your liabilities or debts on the other. Subtract one from the other and you arrive at an idea of your net worth or the value of your company or the amount remaining in your chequing account. Simple, right?