Certificate Course in Accounts Executive

(Accounts Payable and Receivables)

Prof. Pushkaraj Vishnu Joshi @ RAJ
B.Com., LL.B., CA,CS,MA, PGDBA

Disclaimer: This PPT is based on review of secondary

data obtained from several research papers, books and
articles and relevant information available on web and
print and the credit is entirely of those sources of
information including the content writers personally;

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 Book-keeping and Accountancy
1. Introduction to Book- Keeping and Accountancy;
2. Meaning and Fundamental of Double Entry Book-Keeping
3. Journal
4. Ledger
5. Subsidiary Books
6. Bank Reconciliation Statement
7. Depreciation
8.Rectification of Errors
9. Final Accounts of a Proprietary Concern

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 JOURNAL

• Meaning, Importance and Utility of Accounting

Documents.
• Meaning, Definition, Importance and Utility of
Journal
• Specimen of Journal.
• Recording of Journal entries with GST

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 ACCOUNTING DOCUMENTS
• Book Keeping records all day to day business transactions on the basis of supporting documents.
• The word ‘document’ means a piece of paper which provides detailed information as a legal
nature.
• Document is a legal proof for recording every transaction e.g. when we purchase computer for
cash `30,000 we get the cash memo, this cash memo is a source document.
• The person or accountant first ensure the reliability and legal proof of the transactions recorded
in the books of accounts.
• Every entry in books of accounts is supported by the relevant documentary evidence .
• These papers are called ‘Accounting documents’ .
• The accounting documents are the base for entering business transactions into the books of
accounts

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 Importance and Utility of Accounting documents
1. Documents are necessary for recording all transactions into the
books of accounts.
2. The accounting transactions are recorded in proper mode and
computer based.
3. Accounting documents are stored in physical files or in software.
4. Accounting documents are legal evidence for court matters.
5. Accounting documents are required for charity commissioner's
office.
6. Accounting documents are required for payments of state
government and local body authority.

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 GENERAL TYPES OF ACCOUNTING DOCUMENTS
The most important Accounting Documents for recording transactions in Journal are as follows :
• VOUCHER
• TAX INVOICE
• CREDIT MEMO
• RECEIPT
• CHEQUE

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 VOUCHER
Definition of Voucher: A voucher is a document that provides legal proof of payment made by a
business to a person or party. It serves as evidence of a financial transaction.
Types of Vouchers:
• Cash Voucher, Bank Voucher, Purchase Voucher, Sales Voucher: Common types of vouchers that
record specific types of payments, like cash, bank transactions, purchases, sales, travel expenses,
wages, and salaries.
Classification of Vouchers:
• Internal Voucher: Created internally by the business and signed by the payee, used when no
external receipt is available (e.g., taxi fare, bus fare).
• External Voucher: Generated by an external party and received by the business as proof of a
transaction (e.g., tax invoice, electricity bill receipt, debit/credit notes).
• Journal Voucher: This is the primary voucher based on which transactions are recorded in the
journal book.

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TAX INVOICE

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CREDIT MEMO

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RECEIPT

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CHEQUE

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 Meaning, Definition, Importance and Utility of Journal
Business Transactions: Businessmen handle numerous transactions daily, which can't be remembered without recording.
Importance of Books of Accounts: To organize transactions, businesses maintain various accounting records, depending on
the business size, nature, and transaction volume.
Essential Books:
• Journal: Also called the "Book of Original Entry," records daily financial transactions chronologically. It helps sort transactions for later transfer to the
Ledger. Journal entries specify the debit and credit names involved, with a brief description.

Ledger: Used to categorize and summarize transactions from the Journal for financial tracking.
Types of Books:
• Primary Books:
• Journal Proper: Records all transactions.
• Special Journals: Includes specific books like Purchase Book, Sales Book, Purchase Return Book, Sales Return Book,
Bills Receivable Book, and Bills Payable Book.
• Secondary Books: Includes the Ledger, which categorizes and summarizes entries from the Journal.

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 Meaning, Definition, Importance and Utility of Journal
Meaning:
• The word “Journal” is derived from the French word “JOUR” which
means a “Day”.
• Therefore journal means a “daily record”.
• A journal contains a daily record of business transactions and hence it
has been named so, as soon as a transaction takes place its debit and
credit aspects are analyzed and first of all recorded chronologically i.e.
In the order of their occurrence (taking place).
• Journal is a book of original entry or primary entry.

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 Meaning, Definition, Importance and Utility of Journal
Definition :
1) According to L.C.Cropper
“A journal is a book, employed to classify or sort out transactions in a
form convenient for their subsequent entry in the Ledger”

2) According to a Dictionary for Accountant written by Eric Kohler

“ A Journal is the book of original entry are recorded transaction not
provided for in specialized journals”.

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 Meaning, Definition, Importance and Utility of Journal
Journal is an important book in Book-keeping. All business organisations, keep the Journal. The importance and
utility is as follows:-
1. This is the principal book of account. It includes all types of accounts of business
2. It shows all necessary information regarding transactions.
3. The Journal has date wise record of all the transactions with details about accounts it
4. helps to understand the events when its took place.
5. The Journal is subsidiary book in which all the day to day transactions are recorded first in chronological
order in debit and credit form and with the amount of each transaction.
6. Accounting procedure is followed on the basis of accounting documents.
7. The narration provides a brief explanation about the transactions giving clarity of every transactions.
8. It helps to find and prevent errors.
9. It helps to check arithmetical accuracy of the transactions.
10. It helps in preparation of Final Accounts.

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SPECIMEN OF JOURNAL VOUCHER

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THAN Q

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