Dear All,


Basic definition of book keeping is "Book keeping is an art of recording of transactions in the set of Books".

Type of Accounts and rules of Debit & Credit.

1. Personal Account:- The accounts pertains to any Individual, Association, Firm or in the name of any organization

for Example - HR India Ltd., Hr Industries, HR Verma, etc.

Rule - Debit - Receiver.

Credit - Giver

2. Real Account: - The accounts pertains to something which you can show.

for Example - Plant & Machinery, Land & Building, Computer, Cash Stock, Finished Goods etc.

Rule - Debit - What Comes in.

Credit - What Goes out

3. Nominal Account;- The accounts pertains to the things which you can not show

for Example - Salary, Traveling expenses, Net Profit - If asked to show these you will show the Cash in hand.

Rule - Debit All Expenses & Losses

Credit All Incomes & Gains.

Type books.

1. Cash Book - here all cash & bank transactions are recorded.

2. Purchase Register - by the name itself one can identify the all purchase items will be noted in this (the purchase which is related with the manufacturing activity or main activity - purchase of stationery, milk for tea and coffee etc will not entered here

3. Sales Register - here all sales entries will be entered.

4. Journal Register -Other all entries will be entered here.

All revenue accounts will be closed at the end of the financial year the foot end balance will be transferred to Profit & Loss Account.

The net balance of Profit & Loss Account will be transferred to Balance Sheet

All Assets items and Payable Accounts & Receivable account will reflect on the Balance Sheet to the respective side. All the receivables and Assets will appear on Asset Side and All payable and Liabilities will be on Liability Side.

Your Balance Sheet should tally.

This is very very rough process.

Non Commerce person can follow any accounts books right from 11th Standard to B.Com.

In basic only accounting of Proprietor is defined,then Partnership, then Company etc. etc.

It is not possible to illustrate entire here.


From India, Pune

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