Slide 1 : The Lawrence School Sanawar
Slide 2 : By Vinod Kumar ( Accounts Teacher)
The Lawrence School Sanawar
Email: vinod0050@yahoo.com
DOUBLE ENTRY ACCOUNTING : DOUBLE ENTRY ACCOUNTING Accounting is defined as :
Art of recording, classifying and summarizing
In a significant manner
And in terms of money
Transactions and events
Which are, in part at least, of a financial character
And interpreting the results thereof. By Vinod Kumar ( Accounts Teacher)
The Lawrence School Sanawar
Email: vinod0050@yahoo.com
Double entry book keeping : Double entry book keeping Art enables one to attain objectives
Recording of transaction in orderly manner
Classifying refers to grouping of accounts
Summarizing thro’ Trial Balance, Trading, Profit and Loss Account and Balance Sheet.
Terms of money : common language that is through the help of money example : By Vinod Kumar ( Accounts Teacher)
The Lawrence School Sanawar
Email: vinod0050@yahoo.com
Double entry : Double entry If business has 6 machines, 10 tons of raw materials, 10 fans etc, impossible to know which is more value unless they are expressed in a common language.
Financial character : recording is based on financial events. Poor lighting and ventilation, relationship between workers and management, though affect the earning capacity cannot be recorded due to constraints to express in monetary terms. By Vinod Kumar ( Accounts Teacher)
The Lawrence School Sanawar
Email: vinod0050@yahoo.com
Double entry : Double entry Starts with recording and ends with presentation of financial information.
Each transaction or event has two aspects or sides : DEBIT and CREDIT
Accounting trail : it’s a sequence of activities in an accounting process By Vinod Kumar ( Accounts Teacher)
The Lawrence School Sanawar
Email: vinod0050@yahoo.com
CASH BOOK : CASH BOOK Records daily cash receipts and payments
Refers to both cash and bank transactions
Its both book of prime and secondary which means it is both a Journal and a Ledger
Types : Simple, Double and Three column
Debit indicates receipts and credit payments
Maintenance of cash book avoids manipulation and enables reconciliation.
Discount columns are not balanced.
Debit side discount is loss and credit gain. By Vinod Kumar ( Accounts Teacher)
The Lawrence School Sanawar
Email: vinod0050@yahoo.com