Posted by: Jeet Patel
Heyo guys, here comes an another blog that is not restated to out topic at all. COOL so here we go-
Heyo guys, here comes an another blog that is not restated to out topic at all. COOL so here we go-
Guys this blog is related to accounts management that can be done in the business I hope you all will be helpful by this blog.
First of all you have to remember the golden rule for accounting :
"Debit what comes in
And
Credit what goes out"
Below are the system for accounting :
1. Waste Books
2. Journals
3. Subsidiary Books
4. Ledger
5. Trial Accounts
6. Trading and Profit and Loss Accounts
7. Balance Sheets
Let's see all of the above systems on details:
1. Waste Books : In every business or firm there are transactions for many things. And during the business time any of the owner don't have free time to record the transaction systematically in the books of accounting. At that time they note the records for temporarily in a roughy book that book is called the Waste Book. In waste books all the day to day transactions are written roughly. That saves the time while the business time. Waste books are not included in the books of accounting, they just give us an idea for entries in the books of accounting.
2. Journals : Journals are the first step for accounting. It is the book of accounting. Here the transactions of the business are recorded. All the records are recorded systematically in the Journal. The records which are recorded in the journals are the records which were written roughly in the waste book earlier. Transactions are recorded professionally, systematically and clearly. There are two effects of any effects of any transaction, namely Debit and Credit. This table includes five fields they are Date, Particulars, Ledger Folio, Debit and Credit. Debit and credits are incremented according to the given transactions. You need to total the amount in the Debit and Credit, if they comes same then it means that your entries are correct in Journal.
3. Subsidiary Books : There are two types business - Large scale business and - Small scale business. In the small scale business the number of transactions are less. And in the large scale business the number of transactions are more compared to small scale business. (Note : the above statement is not applicable for all the cases) In the business where there are many transactions and are very difficult to record in the journals are written in Subsidiary Books. By the help of subsidiary Books it becomes easy for the accountant as well as the company to identify the transaction and to know the type of Transactions. In subsidiary books accounting system there are different books for every accounts. Each and every transactions are written in the respective account books.
4. Ledger : Ledger includes all the accounts separately. Ledger are very much important to know whether how much money to bring to the next day to the business whether it's Debit or Credit brought forward. Ledger is written according to the entries in Journal entries. In Ledger all the accounts are included which are mentioned in Journal transaction. Ledger has two section -Debit and -Credit. Following are the fields that are included in both Debit and Credit section :
- Date
- Particulars
- Journal Folio (JF)
- Amount
5. Trial Account : Trial balance is not an account, it's a statement. Trial accounts shows you that all the transactions are correctly entered in the Journal as well as Ledger. There are fields like Date, Account Type, Debit and Credit.
Trading and Profit and Loss Account : In this account all the transactions are recorded related to Trading. You can know all the Profits and Losses in the Trading and Profit and Loss Account.
7. Balance Sheet : Balance sheet is the final sheet which gives you all the finalised data from all the accounts which you have prepared before like The Journals entries, The ledger entries and The Trading and Profit and Loss Account entries.
