RECORDING TRANSACTION – FLOW CHARTRECORDING TRANSACTION – FLOW CHART

TransactionTransaction

JournalJournal

LedgerLedger

Trial BalanceTrial Balance

Financial StatementFinancial Statement

Analysis of financial statementAnalysis of financial statement

ReportReport

What is an Account?What is an Account?

An account is a summarised record of all An account is a summarised record of all transactions relating to a particular transactions relating to a particular person, a thing, or an item of income or person, a thing, or an item of income or expense.expense.

Name of the AccountName of the Account

DrDrCrCr

CLASSIFICATION OF ACCOUNTSCLASSIFICATION OF ACCOUNTS

AccountsAccounts

Personal AccountsPersonal Accounts Impersonal Impersonal AccountsAccounts

Real AccountsReal Accounts Nominal Nominal AccountsAccounts

KrishnaKrishna FurnitureFurniture SalariesSalariesGopalGopal BuildingsBuildings WagesWagesLoan from RatanlalLoan from Ratanlal MachineryMachinery InterestInterestSalaries outstandingSalaries outstanding VehiclesVehicles RentRentInsurance pre-paidInsurance pre-paid CashCash

RULES OF DEBIT AND CREDITRULES OF DEBIT AND CREDIT

Real AccountsReal Accounts

Debit what comes inDebit what comes in

Credit what goes outCredit what goes out

Nominal AccountsNominal Accounts

Debit expenses and lossesDebit expenses and losses

Credit income and gainsCredit income and gains

Personal AccountsPersonal Accounts

Debit the receiverDebit the receiver

Credit the giverCredit the giver

JOURNALJOURNALDateDate ParticularsParticulars L.F.L.F. Debit Amt.Debit Amt. Credit Amt.Credit Amt.

LEDGERLEDGERName of AccountName of Account

DateDate ParticularsParticulars J.F.J.F. Amt. Amt. Rs.Rs.

DateDate ParticularsParticulars J.F.J.F. Amt. Amt. Rs.Rs.