How to learn Accounting, Golden Rules,Complete concept the basic of accounts, Basic of Accounts, Accounting Concept,

How to learn Accounting, Golden Rules,
Complete concept the basic of accounts, Basic of Accounts, Accounting Concept,

Basic of Accounts

What are accounts ?

The recording of business transaction or data as for the golden rule in the books of firm organisation, company extras is known as account.

What is golden rule in accounts?

Golden rule is the fundamental application which is applied for passing the transactions.

The golden rules is classified into three  categories as for the type of accounts.

1) Personal Account

2) Real Account

3) Nominal Account

A) Personal Account

-Receiver is the Debit.

-Giver is the Credit.

Debit is the name of person who receives something and Create is the name of person who is something.

For Example

Mr. Lakshman paid rupees 1000 to Mr Ajit.

Dr.    Ajit account..... =  1,000/-

Cr.    Lakshman A/c ...=  1,000/-

B) Real Account

-What comes in Debit.

-What goes out Credit.

In this Debit is the name of assets / properly which comes into business or added into business, but credit is the name of assets / property which goes out from business or deducted from the business.

For Example

Purchase goods worth rupees 10,000 in cash?

Dr. Purchase a/c =10000/-

Cr. Cash a/c =10000/-

C) Nominal Account.

- All expense and Losses are Debit.

- All Income and Gains are Credit.

In this all expenses and losses are debit and all income and gains are credit, nominal account transactions always have one effect in trading, come Profit & Loss account and some time is also have to effect like depreciation.

What do you mean by an accountant?

It is a person who record business transactions for pass. The transaction as per the logic of Golden Rules in the books of account are known as accountant. He have only authority to record transaction as per the instruction of boss and chartered accountant.

Who is chartered accountant?

He is the authority who have right or liability to check the transaction of account as well as find out error and modify it. It is not necessary to check out the errors by chartered accountant. Under such situation the checking is done by the learner who worked under chartered accountant as finishing their "Articleship" after finding error they discuss with their Sir / boss and he makes correction in that chartered accountant is entitled with professional code number which recognise him as an authority practitioner.

What do you mean by financial year?

The period in which the account is to be maintained is known as financial year, as per the current accounting rule the financial year is started from 1st April of current year and it is ended 31st March of commencing year.

What do you mean by assessment year?

Assessment year is the forwarding year which comes after the financial year or in other word we can say assessment is the current year in which the last return is to be submitted.

For example : It the financial year is 2018-19 then its his assessment year is the 2019-20.

What are the different vouchers those are utilised in computerized accounts?

There are lots of vouchers. Those are commonly utilised in computerised accounting like.

1. Receipt voucher

2. Payment voucher

3. Journal voucher 

4. Sales voucher 

5. Sales return voucher 

6. Contra voucher 

7. Purchase voucher

8. Purchase return voucher 

9. Memo voucher 

10. Stock journal voucher

1. Receipt voucher

This voucher is passed when organisation or individual receive cash or Bank from any other organisation or individual.

For example : 

X Private Limited received rupees 5000/- from Sunil in cash.

Dr. Cash a/c  = 5000/-

Cr. Sunil a/c = 5000/-

Note :- 

1.) Cash is a real account which is comes into business. 

2.) Mr Sunil is personal account who pay the amount.

2. Payment voucher

This browser is to be passed when you pay cash or cheque to any other person or organisation.

for example : you pay Rupees 2,000/- Mr. Nirmal and receive 10% as a discount.

Dr. Nirmal A/c.                 = 2,000/-

Cr. Discount Received    = 200/-

Cr. Cash A/c                    = 1,800/-

3. Journal voucher

This Voucher is passed when in transaction any adjustment is accrued. This voucher is also recommended when the transaction more than two transactions are involved.

For example : 

Received rupees 1000/- from Mr baneerjee for Consultation the net amount for consultation is Rs. 1500/-

(i)  Receipt Voucher

Dr. Cash A/c = 1,000/-

Cr. Baneerjee A/c = 1,000/-

(ii) Journal Voucher

Dr. Baneerjee A/c = 1500/-

Cr. Consultation A/c = 1500/-

4. Sales voucher

This voucher is passed when any goods is to be supply by your firm to any other firm or party, at that time you required to pass sales vouchers inventory is also mentioned.

For Example : 

you have sold goods to Mr. Ashok worth Rs. 10,000/- but he will return goods worth Rs. 1000/- due to damage in delivery.

Please, pass only sales transaction entry.

Dr. Ashok A/c = 10,000/-

Cr. Sales A/c  = 10,000/-

5. Sales return voucher

This voucher is to be passed when your sold goods is to be return by customer.

For Example : 

you have sold goods to Mr. Ashok worth Rs. 10,000/- but he will return goods worth Rs. 1000/- due to damage in delivery.

Please, pass only sales return entry.....

Dr. Sales Return ....= 1,000/-

Cr. Ashok A/c.........= 1,000/-

6. Contra voucher

Contra voucher is to be passed when cash from bank or goes into bank.

For example : 

cash deposited into Dena Bank rupees 10,000/-

Dr. Bank A/c ........ = 10,000/-

Cr. Cash A/c ........ = 10,000/-

7. Purchase voucher

Purchase voucher is passed to when you purchase goods by any other firm or party at that time required to passing purchase voucher. In computerised accounting along with passing purchase voucher inventory is also mentioned or upgraded.

For Example :

suppose you purchase goods worth rupees 15,000 by Mr. A and returns him goods worth rupees 2000 due to damage.

Please, pass only purchase transaction.

Dr. Purchase A/c...... = 15,000/-

Cr. Mr. A A/c.............. = 15,000/-

8. Purchase return voucher

Purchase return voucher is to be passed when you return goods to you vendor due to any reason.

For example : 

suppose you purchase goods worth rupees 15,000 by Mr A and returns him goods worth rupees 2000 due to damage.

Please, pass only purchase return entry.

Dr. Mr.A A/c....................... = 2,000/-

Cr. Purchase Return A/c..= 2,000/-

9. Memo voucher

Memo voucher is passed once or twice during the financial year. This voucher is content along note, which is query the details information of the transaction.

10. Stock journal voucher

Stock journal voucher is passed when you want to keep the status of raw materials which will be needed to construct a finished product. In short we can say this voucher is passed for the raw materials transaction.

What are the different type of accounting?

There are two types of accounting

1 : Financial Accounting

2 : Intigrated Accounting

Financial Accounting

in this type of accounting only cash transaction will be recorded. This accounting is not up to Mark and this process of accounting is not acceptable as per the law

Intigrated Accounting

In this accounting both cash and credit transaction is to be recorded. This process of transaction is up to Mark and acceptable as per the law.

What is predefined group? What are the its utility?

Every accounting package contain some predefined group which make the user work more easy and some other. Some predefined group Like : Bank account, Capital account, Current assets, Current liabilities, Direct expense, Direct Income Duties and Taxes, Fixed Assets, Indirect expenses, Indirect Income, Investment, Provision, Purchase Account, Reserve and Surplus, Sales Account, Secured Loan,  Sundry Creditors, Sundry Debtors,  Unsecured Loan, etc.

What do you mean by contingent Assets and liabilities?

Those Assets and Liabilities which is under the judgement of court is known as contingent asset and liability, in this type of Assets and Liability both party claim for authorised power upon it, it's related Note is to be given in the foot note of the document.

What are the different type of Expenditure ?

There are three types of Expenditure.

1. Capital expenditure 

2. Revenue expenditure 

3. Differed expenditure

1. Capital expenditure

This type of Expenditure is done for any fixed assets i.e. attached with the business for long time use like : Plant and Machinery, Land and Building, Furniture etc.

2. Revenue expenditure

This expenditure is done for maintaining the proper rotation of the business. This is one of the important expenditure for any business. Some expenditure like : Salary, Wages, Electricity, etc.

3. Differed expenditure

This expenditure is done for long time benefit. Its current effect did not come but in long term two piece Twitter neighbor it create customer and build the brand image like : advertisement, promo etc.

What is bad debt?

Bad dept is the mutual or constant understanding or assumption for specific payment. In other words bad dept means not recoverable and after waiting a specific time span finally decided to treat is as a bad debt.

What is depreciation? What are the different type or method for depreciation calculation?

Depreciation is the de-valuation of assets. It is commonly of assets. It is only applicable upon such type of assets which help a fixed time frame for its per performance like, machinery, electronic goods, furniture. Etc, Depreciation always have two effect its one effect comes in the profit and loss account and another effect is comes in the Asset side of balance sheet. There are two type of depreciation calculation method is commonly used in the accounts.

1. Straight ine method :-

2. Diminishing balance method :-

In first process of calculation (Depreciation) the value of depreciation is to be fixed till its life time, but in the second process of calculation depreciation value is to be depend upon the last year balance.

What do you mean by financial book and financial report?

Financial book is the specific head of account which shows the specific status like Cash Book, Sales Books, Purchase Books, Bank Books, etc. But financial report is the accumulation of different financial book under specific name of account like Trial Balance, Balance Sheet, Profit and Loss Account, etc.

What is Trial Balance?

Trial balance is a financial report which content the different account group along with their ledger like : Sundry Debtors, Sundry Creditors, Capital Account, Secured Loan and Unsecured Loan and Advance etc. The status of Trial Balance is very helpful in preparation of Final Account. The accuracy of account is directly depend upon the trial balance. When companies Final Account is to be verified then the balance in the format of opening and closing is must be needed by the chartered accountant.

What is profit and loss account?

Profit and Loss is a financial report which content Indirect Income, Direct Income, Indirect Expenses and Direct Expenses in Manual accounting Sales, Purchase is to be mentioned under the head of Trading Account. But in computerized account this all heads will be comes only in the Profit and Loss Account under same head, Show Gross Profit and Net Profit or Gross Loss and Net Loss.

What is Balance Sheet?

Balance Sheet is a financial report which is categorised into two heads Assets and Liabilities the left side of balance sheet is treated as Liabilities and right side is treated as Assets.