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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