The new accounts include revenues, expenses and drawings. Revenue is an increase in equity resulting from the sales of services and goods in the business, also known as fees earned or sales. Expenses are the cost that is related to providing these revenues. For example; rent, supplies, wages, furniture and advertisement. Drawings are not included in the income statement as it has no direct relationship with the company/business. It is withdrawals from the business by the owner. These withdrawals represent a decrease in equity.
acc 11. 