Professional Documents
Culture Documents
TYPES OF ACCOUNTS
PERSONAL
NOMINAL
REAL
Nominal Account
Real accounts
Exercise
Account
Capital Rams account Salary account Drawings account Rent account Debtors account General reserve account Investment account Real
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Type
Personal Personal Nominal
Nominal Personal
Wages
Insurance premium Outstanding wages Advance premium Reserves & surplus Charity account Loss by fire account Bank account Cash account Accrued income Preliminary expenses Interest on loan
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Books Of Accounts
A business organization maintains three important books of accounts: Cash Book: to record all the cash payments and receipts including bank transactions. Journal: to record non-cash transactions. Ledger: contains the classified summary of all transactions recorded in the cash book and journal.
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P&L a/c
B/S
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Journal
In the books of . for the year ending .
Date Particulars a/c To . a/c Dr. LF Amount (Rs) Dr. xxx xxx Amount (Rs) Cr.
( For )
Eg: Mohit started business ,with a name M/s Mohit & bros, of selling toys. The amount invested initially was Rs. 50,000.
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Cntd..
Journal
In the books of M/s Mohit & Bros., for the year ending 31 march 2006
Date Particulars Dr. LF Amount (Rs) Dr. 50,000 Amount (Rs) Cr.
50,000
Two accounts involved here are cash account and capital a/c.
Cash is a real a/c and for business cash is coming in , hence should be debited.
Capital a/c is a personal a/c as it denotes the owner i.e. Mohits a/c. Mohit is the giver and hence should be credited
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Cntd..
Two accounts involved here are cash account and Furniture a/c.
Cash is a real a/c and for business cash is going out , hence should be credited. Furniture a/c is a real a/c. Furniture is coming in the business , hence should be debited 15 Cntd..
5/1/0 5
Dr.
30,000
30,000
toys are purchased for the purpose of re-sale, therefore they will be considered as goods. - Two a/cs affected here are Purchase a/c and cash a/c Cash is a real a/c and for business cash is going out , hence should be credited. Purchase a/c is a nominal a/c. and is an expenditure for the business , hence should be debited.
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Cntd..
10/1/05
Dr.
500
500
Toys have been purchased for personal use and not for business use, hence will be categorized as drawings.
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15/1/05
Dr.
1000
1000
Here the two a/c s affected are sales a/c and cash a/c. Sales is a nominal a/c . All revenues should be credited. Cash is a real a/c . Cash is coming in , hence should be debited
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On 16 Jan. he sold toys to Euro kids, a nursery school, for Rs.10,000 on credit.
In the books of M/s Mohit & Bros., for the year ending 31 march 2006
Date Particulars L F Amount (Rs) Dr. Amount (Rs) Cr.
16/1/05
Dr.
10000
10000
Here the two a/c s affected are sales a/c and Debtors a/c.
On 20 Jan. received a cheque from Euro kids for Rs. 10,000, it was deposited in bank on 23 Jan.
In the books of M/s Mohit & Bros., for the year ending 31 march 2006
Date 20/1/05 Particulars Cash a/c To Euro Kids a/c Dr. L F Amount (Rs) Dr. 10000 10000 Amount (Rs) Cr.
( For cheque for Rs. 10000 received but not deposited in bank) 23/1/05 Bank a/c To Cash a/c Dr. 10000 10000
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On 25Jan. Paid Rs. 8,000 towards the rent of the shop to Shyam Sunder
In the books of M/s Mohit & Bros., for the year ending 31 march 2006
Date Particulars L F Amount (Rs) Dr. Amount (Rs) Cr.
25/1/05
Dr.
8000
8000
Here the two a/c s affected are Rent a/c and Cash a/c.
Cash is a real a/c and for business cash is going out , hence should be credited. Rent is a nominal a/c and is an expenditure for business , hence should be debited.
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BALANCE SHEET
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