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Basic Commerce

The document provides definitions and explanations of key accounting terms including: - Accounting is identifying, measuring, recording and communicating financial information. - The main objectives of accounting are to provide a record of business transactions, protect assets, determine profit/loss, and prevent errors. - Basic terms include capital, liabilities, assets, revenue, and expenses. - Personal accounts are for transactions with people/firms while impersonal accounts are for non-person transactions like assets and expenses. - The golden rules of accounting depend on whether the account is personal, real, or nominal. - Bookkeeping is recording monetary business transactions systematically in accounts. Key accounting records include journals, trial balances, and balance sheets

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Rahul Gupta
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217 views5 pages

Basic Commerce

The document provides definitions and explanations of key accounting terms including: - Accounting is identifying, measuring, recording and communicating financial information. - The main objectives of accounting are to provide a record of business transactions, protect assets, determine profit/loss, and prevent errors. - Basic terms include capital, liabilities, assets, revenue, and expenses. - Personal accounts are for transactions with people/firms while impersonal accounts are for non-person transactions like assets and expenses. - The golden rules of accounting depend on whether the account is personal, real, or nominal. - Bookkeeping is recording monetary business transactions systematically in accounts. Key accounting records include journals, trial balances, and balance sheets

Uploaded by

Rahul Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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SAI INFOTECH COMPUTER INSTITUTE

IN FRONT OF CITY KART VIJAY CHOWK GORAKHPUR

TALLY ERP 9
DEFFINATION OF ACCOUNTING :- THE IDENTIFY ,MEASURING,RECORDING AND

COMMUNATING OF FININCAL INFORMATION IS KNOWN AS ACCOUNTING .

FINANCIAL YEAR :- 1 APRIL TO 31 MARCH

OBJECTIVE OF ACCOUNTING :-
1)TO PROVIDE A RECORD OF ALL BUSINESS TRANACTION IN A SYSTEMATIC
MANNER.

2)TO PROTECT AND CONTROL BUSINESS PROPERTICES.

3)TO KNOW THE EXIT RESION OF NET PROFIT AND NET PROFIT AND NET LOSS.

4)TO PREVENT THEFT ,FRAUD AND ERROR.

5)TO KNOW THE PROGRESS OF THE BUSINESS YEAR AND YEAR.

BASIC ACCOUNTING TERM


CAPITAL :-THE OWNER INVESTED IN THE ASSET OF THE BUSINESS IN USUALLY
CALLED CAPITAL.

OR

AMOUNT WHICH IS USED TO START A BUSINESS IS KNOWN AS CAPITAL.

LIABILITY:-ALL THE DEBTS OWNED BY THE BUSINESS TO OUT-SIDE PARTY’S


(CREDITORS).

THERE ARE TWO TYPES OF LIABILITIES

1.CURRENT LIABILITIES (SHORT TERMS LIABILITIES) : CURRENT LIABILITIES ARE


CREDITORS ,BILLS PAYABLE ,SHORT TERMS LOAN.(LESS THAN 1YEAR PERIOD).

SAI INFOTECH COMPUTER Page 4


SAI INFOTECH COMPUTER INSTITUTE
IN FRONT OF CITY KART VIJAY CHOWK GORAKHPUR
2.NON CURRENT LIABILITIES (LONG TERMS LIABILITIES): NON CURRENT
LIABILITIES ARE THOSE LIABILITIES WHICH IS PAYABLE AFTER A LONG
PERIOD.(MORE THAN 1YEAR’S).EX :- DEBENTURES , EQUITY , SHARES , ETC.

ASSETS :- ASSETS ARE ECONOMIC RESOURSE WHICH ARE OWNED BY A BUSINESS


AND EXCEPT TO FUCTURE OPRECTION.

 THERE ARE TWO TYPES OF ASETS :-

1)CURRENT ASSETS:- A CURRENT ASSETS –SOMETIMES CALLED A LIQUID


ASSETS.

EXAMPLE :- CASH IN BANK , PREPAID EXPENSES , SHORT-TERMS INVESTMENT,


LIQUID ASSETS,ETC.

2)NON CURRENT ASSETS(FIXED ASSETS) :- FIXED ASSETS ARE KNOWN AS NON-


CURRENT ASSETS –ASSETS THAT CAN’T EASILY CONVERTED INTO CASH.

EXAMPLE:- LONG TERM INVESTMENT, LAND, PROPERTY, BUILDING, COPY RIGHT


, TRADEMARKS, ETC.

 THERE ARE TWO TYPES OF NON CURRENT ASSETS :

1) TANGIBALE ASSETS : THOSE ASSETS WHICH CAN BE SEEN ,TOUCH AND


CAN BE MEASURE IN MONEY.
EX : COMPUTER , MOTORS , MACHINERY ,ETC
2) NONTANGIBALE ASSETS : THOSE ASSETS WHICH CAN’T BE SEEN OR
TOUCH BUT CAN BE MEASURE IN MONEY.
EX : COPY RIGHT , GOODWILL,PATENTS ,LONG TERMS INVESTMENT.

REVENUE :-SOURCE OF INCOME IS KNOWN AS REVENUE.

OR

REVENUE IS THE INCOME OR MONEY THAT A COMPANY OR BUSINESS EARNS BY


SELLING ITS GOODS (PRODUCT OR SERVICE).

EXPENCESS :- THE COST OF GOODS & SERVICE USED UP IN THE PROCESS OF


OBTAINING REVENUE.
SAI INFOTECH COMPUTER Page 4
SAI INFOTECH COMPUTER INSTITUTE
IN FRONT OF CITY KART VIJAY CHOWK GORAKHPUR
THERE ARE TWO TYPE EXPENCESS.

1) DIRECT EXPENCESS :- DIRECT EXPENSES ARE DIRECTLY RELATED TO THE


PRODUCTION OF THE PRODUCT .

( DIRECT EXPENSES वो EXPENSES होते हैं जब कोई COMPANY/FACTORY


किसी चीज का PRODUCTION करती है तो उसके लिए वो RAW MATERIAL
PURCHASE करती है . इस दौरान कंपनी को बहुत सारे खर्चे करने पड़ते
हैं | जैसे कोई कंपनी ने RAW MATERIAL PURCHASE किया उसके बाद उसे
FREIGHT CHARGE, CARRIAGE CHARGE, WAGES CHARGE आदि इतने सारे खर्चे
हो जाते हैं .| )

EXAMPLE : COST OF ROW MATERIAL , FUEL , FACTORY RENT ,OFFICE


RENT,WAGES ,ETC.

2) INDIRECT EXPENCESS :- INDIRECT EXPENSES ARE NOT DIRECTLY RELATED TO


THE PRODUCTION OF THE PRODUCT .

( INDIRECT EXPENSES को साधारण भाषा में अप्रत्यक्ष व्यय ,


अप्रत्यक्ष खर्च और अप्रत्यक्ष लगात भी कहते हैं। किसी व्यवसाय
में अप्रत्यक्ष व्यय (INDIRECT EXPENSES) से आशय ऐसे व्यय से है। जो
माल (GOODS) खरीदी (PURCHASE) से संबंधित नहीं होते हैं ।)

EXAMPLE : PRINTING , REPAIR CHARGES, TELEPHONE BILL , ELECTRIC BILL ,


TAXES, ADVERTISMENT ,ETC.
PURCHASE :- GOODS BOUGHT BY A BUSSINESS ARE USUALLY REFERED TO
PURCHASE.
SALE :-GOODS SOLD BY A BUSINESS ARE USUALLY REFERED AS SALE.
DEBTORS :-THE PERSON FROM HOME THE BUSINESS HAS TO RECOVER THE
MONEY.
CREDITORS :-THE PERSON TO HOME THE BUSINESS HAS TO PAY MONEY.
ACCOUNT :-AN ACCOUNT IS A SECTION OF THE LEASER IN WHICH ALL THE
TRANSACTION RELATION TO THE SAME ACTIVITY THAT HAVE TAKEN PLACES
DURING A GIVENS PERIODS.

SAI INFOTECH COMPUTER Page 4


SAI INFOTECH COMPUTER INSTITUTE
IN FRONT OF CITY KART VIJAY CHOWK GORAKHPUR

TYPES OF ACCOUNT
PERSONAL ACCOUNT IMPERSONAL ACCOUNT

(A)DEBTOR (B)CREDITOR (A) REAL (B)NOMINAL

PERSONAL ACCOUNT :- ACCOUNT RECORD TRANSACTION WITH PERSON & FIRM .

IMPERSONAL ACCOUNT :- ACCOUNT WHICH DON’T RELATE TO ANY PERSON IS


KNOWN AS IMPERSONAL ACCOUNT.

A)REAL ACCOUNT :- ACCOUNT WHICH RELATE TO ASSETS ACCOUNT


(CASH,ACCOUNT RECEIVABLE,BUILDING,ETC)LIABILITY ACCOUNT(NOTES
PAYABLE,ACCOUNT PAYABLE,WAGES PAYABLE,ETC).

B)NOMINAL ACCOUNT:- ACCOUNT WHICH RELATE TO EXPENCESS ,LOSSES


,GAIN,REVENUE & ALL TYPE OF INCOME.

GOLDEN RULE OF ACCOUNT


1)PERSONAL ACCOUNT :-DEBIT :THE RECIVER
CREDIT :THE GIVER.
EXAMPLE : PAID RS 20,000 TO SHYAM.

SHYAM A/C DR 20,000


TO CASH A/C CR 20,000
2)REAL ACCOUNT :-DEBIT :WHAT COMES IN
CREDIT:WHAT GOES OUT.
EXAMPLE : PURCHASE MACHINERY RS 50,000.
MACHINERY A/C DR 50,000
TO CASH A/C CR 50,000
3)NOMINAL ACCOUNT :- DEBIT :EXPENCESS & LOSSES
CREDIT:REVENUE & GAINS.
EXAMPLE : PAID SALARY RS 25,000.

SALARY A/C DR 25,000


TO CASH A/C CR 25,000

SAI INFOTECH COMPUTER Page 4


SAI INFOTECH COMPUTER INSTITUTE
IN FRONT OF CITY KART VIJAY CHOWK GORAKHPUR
BOOK KEEPING :- IT IS THE ART OF CORRECTLY RECORDING A MONETARY
EXPECT OF BUSINESS TRANSACTION IN A SYSTEMATIC MANNER.

ACCOUNTING TERM
1)LADGER :-LADGER IS ACTUAL ACCOUNT BOOK.IT CONSIST OF THE DEBIT
&CREDIT DETAILS.
LADGER RECORD DETAILS OF EVERY ACCOUNT DURING A
FINANCIAL YEAR .
2)JOURNAL :-A JOURNAL OF ORIGINAL ENTRY.IT IS THE FIRST PLACE WHERE
TRANSACTION IS RECORDED.

TRIAL BALANCE :- TRIAL BALANCE IS A LIST OF THE BALANCE ON ALL THE


ACCOUNT BOOK PREPARED FOR A GIVEN PERIOD(SOME DAYS,MONTHS,ETC.)

OBJECTIVE OF TRIAL BALANCE :-


1)TO INSURE THAT THERE ARE NO ORITHMATICAL ERROR.

2)TO OFTEN A SOME OF THE LEDGER ACCOUNT & BALANCE SHEET.

BALANCE SHEET :- A BALANCE SHEET IS A FINANCIAL STATEMENT THAT


CONTAINS DETAILS OF A COMPANY'S ASSETS OR LIABILITIES AT A SPECIFIC
POINT IN TIME.
OR
IT IS A STATEMENT OF SHOWING THE FINANCIAL POSITION OF A BUSSINESS AT
A PARTICULAR DATE .

SAI INFOTECH COMPUTER Page 4

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