Journal Entries Accounting (Introduction) | Lecture 5 | Part 1 | JKSSB Accounts Assistant Exam скачать в хорошем качестве

Journal Entries Accounting (Introduction) | Lecture 5 | Part 1 | JKSSB Accounts Assistant Exam

Journal Entries Accounting (Introduction) | Lecture 5 | Part 1 | JKSSB Accounts Assistant Exam Link of Book: https://drive.google.com/file/d/10iXL... Website :- www.eactclasses.com DOUBLE ENTRY SYSTEM OF ACCOUNTING, JOURNAL & RULES OF JOURNALIZING Double entry system of accounting is more than 500 years old. Luca Pacioli wrote the first book of double entry accounting system. Double entry system of book-keeping has emerged in the process of evolution of various accounting Techniques. It is the only scientific system of accounting. According to it, every transaction has two-fold aspects- debit and credit and both aspects are to be recorded in the books of accounts. Therefore, in every transaction at least two accounts are affected. For example, on purchase of furniture either the cash balance will be reduced or a liability to the supplier will arise and new asset furniture is acquired. ACCOUNT (Imagine your bank account for easier understanding) An account refers to assets, liabilities, income, expenses, and equity, as represented by individual ledger pages, to which changes in value are chronologically recorded with debit and credit entries. Basic Rules 1. For every transaction there will be a debit and credit entry. (Recall Dual Aspect Concept) 2. These debits and credits will be equal and opposite. i.e., For every debit there will be an equal and corresponding Credit 3. E.g. in Cash account all cash receipts are recorded on debit side and cash outflows on credit side. Debit & Credit Debit & Credit are the two sides of an account. Left hand side is called debit & Right-hand side is called credit. So, when we say, debit an account, we mean that the amount is to be entered in the debit side i.e., Left hand side of that account & vice versa. This helps in ascertaining the ultimate position of each item at the end of an accounting period. • debiting an account make an entry on the left-hand side of an account • crediting an account make an entry on the right-hand side of an account TRANSACTIONS Transactions are recorded in books of accounts. A transaction is a two-way process in which value is transferred from one party to another. In it either a party receives a value in terms of goods etc. and passes the value in terms of money or vice versa. For recording transactions, it is very important that they are supported by a substantial document like purchasing invoices, bills, pay-slips, cash-memos, pass book etc. ACCOUNTING Accounting of transactions can be done by analysing the transaction under two approaches: 1. Traditional Approach. 2. Modern Approach (Also called Accounting equation Approach) #ACCOUNTING #JKSSB #FAA