Dealers are required to maintain various books for the accounting of the transaction are as under-represented:
(I) No.
(2) Ledger (it is explained in another article) are
Journal
To study the journal, certain conditions must be examined in conjunction with the method of accounting, which read as follows:
The account
Transactions relating to deposits and withdrawals of cash to the cash balance.Increase the cash receipts and payments decline in the cash balance. Instead of increasing increasing or decreasing the balance after each transaction, we can put all together in one column and takes all together in another column, and the balance only to find when needed. It is very convenient and timesaving.
In accounting, as the device is using an account for this purpose. The simple form of the account as a T-account is shown below. Increases were cashlisted on the left side and the decrease on the right side, was found by subtracting the closing balance of the total payments from the sum of the left side.
Debit and credit cards in the accounting
How is it given the shape of the bill clearly divided into two parts: left-side is called "debit side and the right side is called the" positive side ".
Be expelled) amounts on the debit side (left side as a debit and credit amounts for theCredit side, right side) will take the credit. "In order to load" means a place in the left side of an account "and" to credit "means to make an entry in the right side of an account.
The words debit and credit cards have no meaning in accounting.
Abbreviation for debit and credit is Dr. Cr.
Rules of debit and credit cards (Equation Based)
Dual aspect concept in accounting means that each transaction would be taken by an accounting expressionDebit amount and an equal and opposite credit. Thus, the rule states that have required amount for each transaction with the source reference amount has absolutely no exception. The equality of debits and credits in the form of an equation can be expressed:
Debit Credit =
In the previous article we discussed balance equation:
AL = P
Ie, assets-liabilities = owners of the Fund or Capital
If each account was isolated, it would make no difference to be consideredwhether increases were on the debit side or on the credit side, but because the accounts are interdependent, therefore, a system for recording increases and decreases on the two sides had to be determined. Traditional or conventional, increases in asset accounts are recorded on the debit side, while increases in liabilities and capital are recorded on the credit side. The above rule is to ensure that amounted to account balances, will attest to the accounting officer discussed above equation.
Itresult, the following rules:.
1. Increases in asset accounts are debits credits declines.
2. Increases in liability accounts are credits, debits are reduced.
3. Increasing the equity of owners of accounts are credits, debits are reduced.
Total classes of accounts maintained by each company and the accounting of the expenses, losses, revenues and profits in addition to the assets, liabilities and owner funds. Rules of debit and credit cards in terms ofAssets, financial and capital markets are up and covers the rules for expenses / losses and sales / profit can be derived from it.
4. Increases in the cost / loss accounts are debits.
As the costs and losses if they occur, and suffered a reduction in equity capital and ecreases owner accounts are debits to an increase in expenses and loss accounts Debits.
5. Increases in revenue / profit accounts are credits.
Since theSales and profits if it is worthy cause in the increase in equity capital and increase the owner's account to credits, thus increasing sales and profits accounts are credits.
The rules of debit and credit cards are described above, the accounting equation technique. Traditional rules of debit and credit cards are for the classification of accounts converted. These rules apply in practice the same
Results and work in the same way. This stale, the only position in anotherWay.
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