An asset is a resource with economic value that an individual,
corporation, or country owns or controls with the expectation
that it will provide a future benefit.

Different Types of Assets.

1. Fixed Assets

Fixed assets are long-term resources, such as plants,equipment, and buildings. An adjustment for the aging of fixed  assets is made based on periodic charges called depreciation, which may or may not reflect the loss of earning powers for a fixed asset.

Examples of Fixed Assets:
  • Plant & Machinery 
  • Land and buildings
  • Office equipment (Laptop, Computer, Printer, Furniture)
  • Vehicles

(1)Bought a computer for office for 25000 which
was paid through bank account

Transaction - 
Computer A/c - 25000  (Dr.)
Bank A/c - 25000 (Cr.)

Note:- In this transaction we saw two ledgers
computer a/c and bank a/c. Computer is the
fixed asset for company. According to the rule,
when the asset increases in the business, it is debited.
Bank a/c are assets for company When the company's
assets are Decrease, it is credited





2. Current Assets

Current assets are all the assets of a company that are expected to be sold or used as a result of standard business operations over the next year A current asset is a company's cash and its other assets that are expected to be converted to cash within one year of the date appearing in the heading of the company's balance sheet. However, if a company has an operating cycle that is longer than one year, an asset that is expected to turn to cash within that longer operating cycle will be a current asset.

Examples of Current Assets

  • Cash
  • Bank
  • Accounts Receivable (Sundry Debtors) 
  • Inventory/Stock
  • TDS 
Cash
Cash is an asset to the company. whose transactions we do in business.Cash is very important in business. Cash flows in many ways in business. Pay salary in cash in the company 
company's expenses are also done with cash.When  sell goods to someone in business,
take cash from him.And when we buy something from another merchant in business, then we pay his bill in cash.

Example - 
(1)Bought goods worth 20,000 from H.R.  Enterprises and paid in cash

Transaction -
Purchase A/c  - 20000 (Dr.)
Cash A/c  - 20000 (Cr.)

Note:- 
There are two accounts in this transaction, Purchase A/c and Cash A/c Purchase account is the expenses for the business and is debited when the expenses in the business increase. Cash account is the assets for the business, here the amount has been paid by cash, when the assets are Decrease in the business, then the account is credited.

(2) Sold goods worth Rs 25,000 to Ridhima Treding. Co.

Transaction -
Cash A/c  - 25,000 (Dr.)
Sales A/c - 25000 (Cr.)

Note:- 
There are two accounts in this transaction, Cash A/c and Sales A/c.  Cash account is the assets for the business.When the goods sold are paid in cash, the cash increases in the business. As per the rule, when the assets increase, it is debited.
Sales account is income for business. And when the income in the business increases, it is credited.

Bank 




(1) Suresh sold goods worth 50000 to Ramesh on credit
Transaction - 
Ramesh A/c  - 50000 (Dr.)
Sales A/c -  50000  (Cr.)
Note:-