Information Keeda

Accounting Practical Aspects Introduction ·        Accounting is the systematic process of recording, classifying, summarizing, and interpreting financial transactions of a business. ·        To maintain accuracy and transparency, businesses follow a step-by-step process that begins with recording in the Journal, then posting to the Ledger, preparing a Trial Balance, and finally drawing up Profit & Loss Account and Balance Sheet. Journal Entries Definition: A journal is the book of original entry where all business transactions are recorded in chronological order using the double-entry system. Example Transaction : Business started with cash ₹1,00,000. Entry: Cash A/c Dr 1,00,000    To Capital A/c 1,00,000 (Being business started with cash) Additional Numerical Applications: ·        Purchased goods for cash ₹20,000 Purchases A/c Dr 20,000    To Cash ...

Books of Accounts and Financial Preparation Introduction ·        Books of Accounts are systematic records of all financial transactions of a business. ·        They ensure accuracy, help in preparing financial statements, and provide legal evidence of business activities. ·        Examples : Purchases Book, Sales Book, Cash Book, Journal , Ledger , etc. Journal The Journal is the book of original entry where all transactions are recorded in chronological order. Each entry is made following the double-entry system (one debit and one credit). Contains: Date, Particulars, Debit amount, Credit amount. Example : Purchased goods for ₹20,000 in cash. Date                Particulars                   Debit (₹)...

Basic Accounting Principles Introduction ·        Accounting is often referred to as the " language of business " because it communicates financial information about an organization. ·        It is a systematic process of recording, classifying, summarizing, analyzing, and interpreting financial transactions to provide useful information for decision-making. ·        The primary purpose of accounting is to ascertain profit or loss for a given period, the financial position of the business, and to provide financial data to stakeholders such as owners, managers, investors, creditors, and regulatory authorities. ·        Accounting works on certain fundamental principles and conventions which ensure accuracy, consistency, and comparability of financial data. Double Entry System of Accounting ·        The Double Entry System ...