Basics of Account

or
4 Alcounting Process one
s fuel
y eg.cl p
Transactions event n
profit
Journalising

posting

Ledger

1
Profit 1051
Airontanly Trial Balanie

financial statements income statement

financial Results

Position statement

financial position
I
own owes

Types of Allount

1 A
Ass Ala liability Aln income As Ex enses All

I 1 I t
increases Decreases increases Decreases
1 A
credit
crfdit pedit
Debit
 AI fed
Dr ALEX er do in m at All

Geerease increase
If needs

summary

Accounh Increase Decrease increase Decrease Bal

Dr er Dr Bat
Asset All It If
Liab All Do or Dr Cr Bal
I

Expenses All Do co Dr or Dr Bad

Income All Cr Dr Cry Dr Cr Bal

Dr mean left hand side of any account

in care of Asich Expenses it is increase side

Liak income Decrease

so mean Right hand side of any account

In case of Assets Expenses its it Decrease side

liab Income increase

 Example

1 Started bluines with cash I 100.000 Bank I 60.000 computer 40000

2 Purchased till for I 100.000 paying I 30000 in cash Bal on credit

3 Purchased goods of I 50.000 on cash I 30000 on credit

4 sold goods for I 000 of cash received I 40.000

5 Purchased investment or I 20.000 through bank

6 sold investment for I 22.000 proceeds received in bank

7 salary I 5000 Rent I 3.000 sundry Expenses of I 2000 paid

8 Received I 6000 an interest commission I 4000

9 Provide for Depreciation 101 on computer MIC

10 paid to Crediton for I 19000 in full settlement of I 20.000

11 Received I 18000 in full settlement from DD

 10in

Dr Cash All CAI Is a Dr Bank All A 1 co

40.000 50000 22000

10000 10000

19000 62000
18000
59000

168000 For 2 82000

Do Computer All CA I can Do it capital All 14 I er

40.000 4000 200.000

36000 200.000

Dr MICA C CA 1 or Dr 1 vendor All 14 co

100.000 10.000 70000

90000 70000

D Purchases All CEl 1 or pr 1 creditor Als C or

80.000 20000 30000

 80000 10.000

Do Debtor All CAC 1 or Dr 1 sales All Cll or

20.000 20000 60.000

60004

Dr Investment All At t.cn Dr 1 Profit on sale All 111 or

20.000 20000 2000

2000

Do Rent Afc CE t.co Do salary All IE 1 or

3000 5000

Do sundry Exp All CE a Dr y interest received All I or

2000 6000
Do I commission received All 111 or Dr Depreciation All Et t er

4000 14.000

Dr I DIR All 811 er Dr T DIA All CE

1000 2000

TB

Do Bal o Bal

cash 59000

anil 6200

computer 36000

capital 200.000

MIC 90000
 vendon 70000

Purchaser 80000

Crediton 10000

sala 60000

Profit on sale 2000

Rent 3000

salary 5000

sundry exp 2000

interest received 6000

commission received 4000

Dep 14000

DIR 1000

DIA 2000

353000 353000

Provision

To create provision PSL All Dr

to provision for All for

A
Provisiton
Provision of Expenses for Decrease
1 in value of Asset

eg Provision for Tani

A

Provision for Gratuity 9 Prov for Doubtful Debls

Provision for warranty claims Prov for Bad debts

Prov for Discount on DD
 Prov Vor Dep
Liab side
1
Asset side ve

Received I 10.000 from Ram on behalf of Sita

lash All Dr 10.000

To Sita 10.000

Paid I 15.000 to Laxman on behalf of Hanuman

Hanuman All Dr 15000

TO Cain 15000

outflow of Goods

say sale of Goods cash All bank Alc Debton All Dr

To sales All Cr

Purchaser Reteep cash All Crediton All Dr

b
AlyBanis
TO PIR All Cr

Cy Goods withdrawn or Drawings All Pr

personal use Purchases All

to
ell Goods given as charity charity All DV

of free samples Advt All Do

To Purchaser Cr

14 Goods lost by five claim receivable All Do

loss by fire At Dr

To Purchaser er