Accounting software Tally Note (Session 1)

Accountant

Every transaction depends on amount. And it must have two fold effect debit and credit. it assumes that must equal to credit  i.e. it considers the effect of equal amount on both side of amount.

Some important word of the account

capital:-

this is the amount invested by the businessman to start a business. the single person invests the money or other or other properties to start a business. in a partnership firm, two or more partners contribute the capital. in join stock company investor directly invest the capital by purchasing shares of stock issued by the company.  hence capital is an investment made of profit, by owner.

3.                LIABILITIES

Which to be returned or paid to third party in future called liability. We have 2 kinds of liability:

i       current liability:

Which is to be paid within the one income year called current liability?

Eg: sundry creditors, bills payable, bank lone, advance income, outstanding exp.

long term liability

This is to be paid after one or more than one income year called long term liability.

E.g.: long term loan, debenture

2.                  ASSETS

Assets mean such types of receipt after payment, which can use a long period or can be sale if necessary. It also depends upon the nature of the organizations.

Normally we can find 2 kinds of assets in business firm.

i       Fixed assets: 

Such types of assets which is not purchase with the purpose of resale. It is used for the long period to operate the business continuous in future. With out make effect to organization we can't sale it i.e.  Land & building, plant & machinery, computer, furniture, equipments, vehicles, copyright, goodwill and patents etc.

ii      Current assets: 

we can say current assets for such kinds of assets which are in business as cash or we can immediate change in cash when necessary i.e. cash & bank, stock of goods, sundry debtors, bills receivable

4     GOODS

Goods mean such types of product or service which is purchase or produce with the purpose of gain profit after sale. So, for the vendor of salt, salt is goods but for the vendor of gold, gold is goods. Means it depend upon the nature of the business.

 During the period of making ledger we can post it under the purchase or sales a/c according to transactions.

4.                INCOME

 Discount received, Interest Received, commission received, rend receive, sales and serves charge receive, assets appreciation etc.

5      EXPENSES

carriage inwards, outward duty, custom duty, manufacturing exp, Wages, salary, office rent, discount allowed, interest paid, depreciation, carriage outwards etc.

Types of account

          We can find three kinds of account in our real life:-

1       personal account

2     real account

3     nominal account

1>PERSONAL ACCOUNT

We can say personal account for such type of account where we find the name of personal individual or any form or the name of organizations.

Accounting rule for personal account:-

Eg ram a/c, cse trade link a/c, shiddhartha still pvt a/c etc.

Dr the receiver

                   Cr the giver

2>REAL ACCOUNT

Such type’s accounts are directly related with the assets or some kinds of physical products.

Eg furniture, land and building, machinery, cash a/c, Himalayan bank a/c etc.

Rule of accounting

What comes in dr

                             What goes out cr

3>NOMINAL ACCOUNT

                    This account is direct related with the income and expenditure. We do the transaction of money on the name of these accounts.

Eg interest received a/c, house rent paid a/c, discount allowed a/c, electricity a/c, salary a/c, wages a/c etc

Rule of accounting

Dr for expenses

          Cr for income

 

particular	debit	credit
Capital & liabilities	decrease	increase
assets	increase	decrease
goods	purchase	sales
p & L	exp.	income
cash in hand	receive	payment
goods return	sales return	purchase return
party	costumer	vender

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