ACCOUNTING IS PROCESS OF RECORDING

TRANSACTION RELATED TO INCREASE

OR DECREASE OF MONEY; ITEM;
EXPENSE (EXPENSE ALWAYS INCREASES)

A/C WHICH INCREASES/GAINS/

RECEIVES IS Dr (Debited)

A/C WHICH DECREASES/

LOSSES/ GIVES IS Cr (Credited)

TYPES OF A/C: MONEY:- CASH A/C ; PETTY CASH A/C;BANK A/C

ITEM:TRADING ITEM (STOCK/GOODS/MAAL)
WHEN PURCHASING GOODS TRADING ITEM/GOODS /
STOCK=> PURCHASE A/C
WHEN SELLING GOODS TRADING ITEM/GOODS / STOCK=>
SALES A/C

NON TRADING :- WRITE DIRECTLY NAME OF A/C

(E.G:- COMPUTER;MACHINE; STATIONARY)

TYPES OF A/C: EXPENSE:- WRITE DIRECTLY NAME OF A/C (LOSS;

DESTORY; ELECTRICITY; RENT; ADVERTISMENT)
OWNER:- WHEN GIVING MONEY CAPITAL A/C
WHEN TAKING OUT MONEY OR ITEM
(TRADING/NON-TRADING) DRAWING A/C
PARTY: - WRITE NAME DIRECTY.

NAME OF
ACCOUNTS

RULES

EXAMPLES

PERSONAL A/C

DR. THE RECEIVER

CR. THE GIVER

NATURAL PERSON: RAMA/C

ARTIFICIAL PERSON: SHIV & CO.

REAL A/C

DR. WHAT COMES IN

CR. WHAT GOES OUT

TANGIBLE (LAND, BUILDING) &

INTANGIBLE (GOODWILL)

NOMINAL A/C

DR. ALL EXPENSES AND

LOSSES
CR. ALL GAINS AND PROFITS

EXPENSES, PURCHASE, LOSS,

PROFIT, DISCOUNT ETC.

TYPES OF ACCOUNTS

RULE FOR INCREASE

RULE FOR DECREASE

ASSETS

DR.

CR.

LIABILITIES

CR.

DR.

CAPITAL

CR.

DR.

INCOME (REVENUE)

CR.

DR.

EXPENSES

DR.

CR.