User talk:Tobineapen

ACCOUNTING

Definition

Accounting is the proses of recording,classifying and summerising in a specific and manner in terms of money

There are two methods of accounting: single entry system and double entry system single entry system

usually single entry system is used by the single owner business and the transactions are limited. in this type only cash entry are concidering double entry system is used by the big firms and companiy it contain all the cash and redit entries

Classification of accounts

Real accounts:  Debit what comes in credit what goes out

personal accounts: Debit the reciever credit the giver

Nominal accounts: Debit all expenses and losses credit all income and gain

journal

journal entries tells the history of a transaction. once a transaction is done first proses of accounting is journalising of that transaction. It hve two sides credit side and debit side

ledger

ledger posting is the next step in accounting proses

Trial balance

trail balance preparation is the ending proses of accountig in a normal day. It contains a credit side and debit side. IF the accounting procedure have any mistake the trail balance show the difference in two sides

Final accounts Normally our financial period is started from april to march. the final acconuts are prepared on 31st march. it is prepared for ascertaining the profit or loss of the company and to know the credibility of the company.

Trading accounts

IT is a final account It contains the direct income and direct expenditure of a company

Profit and loss accounts

IT is prepared to ascertain the profit or loss of the company. At the end of this accounts we get the nt profit of the company during a specfic financial year.

Balance sheet

Balance sheet is a statment. It is prepared at the end of all accounting prosses of the financial year. It has two sides Asset side and Liability side. The share holders of the company handle their shares after analaising this report

This are the basic books maintained by a trading company

Thank you,