Vous êtes sur la page 1sur 5

BASIC ACCOUNTINGH PROCEDURES

BUSINESS: It is regular production or purchase and sales of good and service


under taken with the object of earring profits and acquiring wealth through
satisfaction of human quant.It means the reported buying and selling of goods
and services to earn proprietor.
PROPRITER: He is the owner of the business. He brings capital into the
business. He enjoys all income from accounting points of view business is
different from its proprietor.
ASSETS: As or properties are position with belong to a trader. They help the
trader in carring on his business.
EXAMPLE: plants and machinery, land, investment, goodwill patents,
trademark, Debtors, bills receivable etc.
LIABILITES: These are debts using by a tender to outsides.
EXAMPLE: creditors, bills payable, overdraft, loans.
CAPITAL: it is all amount of money property with which a trader starts his
business. This is also known as the Net worth or net asset. The excess of
assets over liability is also known as capital.
DEBTORS: He is a person who owns to money to the business he has to pay.
Some amount to amount to the business for recieveing a benfit from the
business. He is an asset to the business.
CREDITORS: He is a person to whom amount is owned by the business. The
business has to pay same amount to him for receiving a benefit from him. He is
a liability to the business.
DRAWING: IT IS THE VALUE OF CASH or good withdraw from the business
by the proprietor for his personal or private or domestic use. It is treated
As loan taken the proprietors from the business.
GOODS: These are commodities (articles) in which the business deals
commodities purchased for the purpose of sales are termed as goods to a
furniture dealer furniture is assets.
EXPENSES: Money spend on conducting business activates. It is the amount
paid or payable for any services received by business from others.
EXAMPLE: salaries, wages, insurances, stationary,

Advertisement ect..
INCOME: IT IS THE AMOUNT earned by the business forbs enduring services
to others.
EXAMPLE: rent received, commission received, in trust received
BANKOF ACCOUNT: There are different sets of book which are used to
record business transaction of varied nature.
EXAMPLE: journal, ledgers, purchagebooks, cashbook, bankbook
VOCHER SYSTEM: A voucher system is a system by means of which and
other evidences of liability are collected, audited, recorded and settled same
documents are
1. Money receipts
2. Payments voucher
3. Journal voucher
LIVE STOCK: HORCES, BULLOCLES, and other animals which are used in
business are called livestock of that business.
TANGABLE ASSTES: SUCH ASSESTS WHICH HAVE PHYSICAL
ERISTANCE, I.E THEY BUSINESS ARE CALLED LIVE STOCK OF THAT
BUSINESS.
INTANGABLE ASSETS: these assets which have no physical existence. I.E
they cannot be seen and touch are terned as intangible assets. Trade marks,
goodwill, copyrights and patents etc.
SYSTEM OF ACCOUNTING
A. SINGLE ENTRY SYSTEM: UNDER THIS SYSTEM ONLY personal
accounts are maintained, under this system complete record of business
transaction is not done during a specified period. Hence, neither the trail
balance for final accounts. This system is simple and less costing but is
adopted By small concerns where as business transactions are free in fact
this is not a system.
B. DOUBLE ENTRY SYSTEM: (IF is generally accepted the most widely
used system of accounting according to his system given every business
transaction will have two aspect

1.Benefit received 2.Benefit given when a business received by benefit


it has to given another benefits of equal value in return recording of these
two aspects benefits in two different accounts an different sides is
credited with an equal amount. Thus on any date the total of all creditor
become every debits has corresponding credit and voice versa.

EXAMPLE: furniture purchase for cash 5000/.


In the above transaction furniture came into business. It is the benefit
received by the business cash went out from the business. It is the
business, in the above transaction furniture accounts debited by rs 5000/.
and cash a/c is creditors by rs 5000/.
As explained above every business transaction assets two accounts is
debited and another account is credited.
While debiting or crediting an account we have to follow the golden
rules of accounts.

ADVANTAGE OF DOUBLE ENTRY SYSTEM:

1.COMPLETE RECORD: It records both the as of a transaction accounts since


each debit has a corresponding credit of equal amount
COMPLETE RECORD: It records both the as prepare of a transaction. Hence
the record is completed.
2. Arithmetical accuracy: IF ensures that the record is arithmetical accounts.
since each debit has corresponding credit of equal amount the debit and credit
amount the debit and credit must duty tally.
3.Reliable information: If provide reliable information about the balance
receivable from or payable. To various persons such as declare creditors,
barrows, ledgers and owners it shows the correct amount of the asset and of
business such as cash good ,fixed assets and investment.
4. final account: If enable preparation of the final account or the business. These
final account are useful to the owners and the outsides like creditors, leader,
employee government, investments etc..

BUSINESS DECISION: If provides useful information to the owner and


managers. For improving the profitability efficiency and financial strength of
the business
EARNING OF DEBIT: The word debit has derived from the Latin world
debtor which means due for dates is simple. The receiving assets are called
debited.
MEANING OF CREDIT: The word credit has been devided from the Latin
word creditor which means due to that in simple the given asset is called
creditor
PROFORMA OF JOURNAL

DATE

PARTICULAR
NAME OF
THEACCOUN
T TO BE
DEBIT
TO NAME
OF A/C TO BE
CREDIT

L.F

DEBIT
XXX

CREDIT
XXXXX

DATE COLUMN: IN this column the data on which the transaction book place
is maintained transaction should be recorded straight in the same order in which
they took place [chronological order that 1-1-2010,2-1-2010 and 31-12-2010
etc]

PARTICULARS COLUMN: It this the name of the


account ensured are written first the account to
words the word DR written to words the end of the
column. In the next line; after leaving a little space.
The name of the account to be credited is written
proceeded by the word "TO then in the next line the
explanation for the entry together with necessary
details is given this is called Narration.
LEDGER FOLIO COLUMN: In this column the page
number in the ledger on which the particulars
account appears is written

DEBIT COLUMN: IN this column the amount to be


debited is the entered against the name of the
account to be Credit.
CREDIT COLUMM: In this column the account to be
credited the entered the against the name of the
account to be credited