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BOOK KEEPING
by :
DR. T.K. JAIN
AFTERSCHO☺OL
centre for social entrepreneurship
sivakamu veterinary hospital road
bikaner 334001 rajasthan, india
www.afterschoool.tk
mobile : 91+9414430763
5 DECEMBER 09 www.afterschoool.tk 1
What is debit and credit
5 DECEMBER 09 www.afterschoool.tk 4
Three rules to make your task
easier
1. debit what comes in, credit what goes out
(real accounts – regarding assets)
2. debit receiver, credit the giver (personal
accounts – regarding debtors, creditors, and
other such accounts)
3. debit all expenses, credit all income
(nominal accounts – relating to income and
expenditures)
5 DECEMBER 09 www.afterschoool.tk 5
Journalising – the first step
5 DECEMBER 09 www.afterschoool.tk 9
Some important facts
5 DECEMBER 09 www.afterschoool.tk 18
What is outstanding expenditure?
5 DECEMBER 09 www.afterschoool.tk 19
What is accrued income ?
5 DECEMBER 09 www.afterschoool.tk 21
WHAT IS REVENUE RECEIPT?
5 DECEMBER 09 www.afterschoool.tk 22
Machinery in the hands of a
manufacturer is ....
Fixed capital – it is fixed assets – it is shown in the balance
sheet as an asset.
When you buy it the entry is :
machinary account debit,
bank account credit
later on you have to show depreciation every year on this.
Suppose machine cost 1000, its life is 10 year, so you will
show 100 every year for 10 years as depreciation in P& L
account
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THANKS....