Research for Book Keeping

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  • Topic: Bookkeeping, Double-entry bookkeeping system, Debits and credits
  • Pages : 7 (662 words )
  • Download(s) : 116
  • Published : February 13, 2013
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BOOK KEEPING

• Book keeping is all about business transaction.
• Accounting not just includes book keeping but interpreting the records of business transaction. • Booking and Accounting allows a person to know whether there is profit made in a business transaction or losses made. • All transaction is kept in ledger.

• In ledger, there are a lot of accounts.
• For all the accounts, there is title.
Etc. Cash Account, Mr. Tan’s Account or ABC Account. • If the account is related to bank, then it will be name Bank Account.

CASH TRANSACTION

|XXX Account | |Debit Side |Credit Side | |Date |Particulars |Amount |Date |Particulars |Amount | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

• It is a standard procedure.
• They won’t change sides.
• Debit is always on the left side.
• Credit is always on the right side

Dr = Debit
Cr = Credit

Two easier account to do = Cash Account & Bank Account.
Cash in hand = Money in office Cash in bank= Money in bank. ( Debit side = Money comes in.
Credit side = Paying of cash.

|XXX Account | |Debit |Credit | | | | | | | |Money coming in |Paying of cash |

* Assets are thing that you own.
* Liabilities are things that are on loan.

• Assets – Bal b/d on Dr side.
• Liabilities – Bal b/d on Cr side.
• Take note when doing book keeping.
• Who are you working for?
• See from company view point.

Example 1

|Cash Account | |Date |Particulars |$ |Date |Particulars |$ | | | |Amount | | |Amount | |Jun 1 |Balance B/d |500 |Jun 2 |Purchases |250 | | 7 |Sales |150 | 4 |Transport |10 | | 10 |Ahmad |220 | 15 |Stationery |15 | | 24 |Sales |200 | 20 |Purchases |180 | | |...
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