1 tally basic
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Accounting is the process of recording transactions related to increases or decreases in money, items, or expenses. Accounts that increase or receive money or items are debited, while accounts that decrease or give money or items are credited. There are several types of accounts including money accounts like cash, petty cash, and bank accounts; trading items like stock, goods, and materials; non-trading items that are named directly; expenses that are named directly; and owner's accounts like capital and drawings. The rules for different types of accounts determine whether they are debited or credited for increases and decreases.
1 tally basic
- 1. ACCOUNTING IS PROCESS OF RECORDING TRANSACTION RELATED TO INCREASE OR DECREASE OF MONEY; ITEM; EXPENSE (EXPENSE ALWAYS INCREASES) •A/C WHICH INCREASES/GAINS/ RECEIVES IS Dr (Debited) •A/C WHICH DECREASES/ LOSSES/ GIVES IS Cr (Credited)
- 2. TYPES OF A/C:- • MONEY:- CASH A/C ; PETTY CASH A/C;BANK A/C • ITEM:- TRADING ITEM (STOCK/GOODS/MAAL) WHEN PURCHASING GOODS TRADING ITEM/GOODS / STOCK=> PURCHASE A/C WHEN SELLING GOODS TRADING ITEM/GOODS / STOCK=> SALES A/C NON TRADING :- WRITE DIRECTLY NAME OF A/C (E.G:- COMPUTER;MACHINE; STATIONARY)
- 3. TYPES OF A/C:- • EXPENSE:- WRITE DIRECTLY NAME OF A/C (LOSS; DESTORY; ELECTRICITY; RENT; ADVERTISMENT) • OWNER:- WHEN GIVING MONEY CAPITAL A/C WHEN TAKING OUT MONEY OR ITEM (TRADING/NON-TRADING) DRAWING A/C • PARTY: - WRITE NAME DIRECTY.
- 4. NAME OF ACCOUNTS RULES EXAMPLES PERSONAL A/C DR. THE RECEIVER CR. THE GIVER NATURAL PERSON: RAMA/C ARTIFICIAL PERSON: SHIV & CO. REAL A/C DR. WHAT COMES IN CR. WHAT GOES OUT TANGIBLE (LAND, BUILDING) & INTANGIBLE (GOODWILL) NOMINAL A/C DR. ALL EXPENSES AND LOSSES CR. ALL GAINS AND PROFITS EXPENSES, PURCHASE, LOSS, PROFIT, DISCOUNT ETC….
- 5. TYPES OF ACCOUNTS RULE FOR INCREASE RULE FOR DECREASE ASSETS DR. CR. LIABILITIES CR. DR. CAPITAL CR. DR. INCOME (REVENUE) CR. DR. EXPENSES DR. CR.