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BOOK KEEPING
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&
&& ACCOUNTING
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By Group no. 06
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Prateek
UU Shrivastava
NN Pawan Sharma
T A.Anand
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OO INDEX
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EE 1. Introduction.
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PP 2. Bookkeeping
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3. Accounting
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4. Bookkeeping Systems
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&& 5. Bookkeeping Practices

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What is
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OO Bookkeeping &
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Accounting ?
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Book Keeping –
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Recording the transaction of
II a Business.
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Accounting –
AA Analysis of the performance
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of the organization on the basis
OO of recorded transactions.
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BOOK KEEPING
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KK Bookkeeping is the recording
of financial transactions
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EE accordance with some predefined
EE rules. Transactions include sales,
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purchases, income, and
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GG organization. Bookkeeping is
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usually performed by a
bookkeeper.
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CC A bookkeeper is a person who
OO records day to day transactions
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of any company or organization
T e.g. Accounting clerk or
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OO Need for Book Keeping –
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KK 1. To keep record of all the


EE transactions e.g. Sales,
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Purchase, Salary etc.
II 2. To compute the trial balance so
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that it becomes the base for
deriving the final accounts.
&& 3. To keep yearly record of the
AA profit earned, loss suffered and
CC income of any business.
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PP ACCOUNTING
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&& ???
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KK Accounting is the process of
deriving the financial statements
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that emerge from the book
EE keeping records. It is performed
PP by an accountant.
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GG An accountant is a person who
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takes trial balance and other
recorded transactions as base,
AA analyzes them and prepares the
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final accounts and balance sheet.
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Need for Accounting –
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EE 1. To analyze the financial
EE status of the company.
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2. To compute the profit earned
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company at the end of the
&& financial year.
3. To analyze the assets and
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liabilities of the company.
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KK Single entry bookkeeping
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EE In single entry bookkeeping system all the
EE transactions are recorded only once in the
PP books of accounts.
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The primary bookkeeping record in single-
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entry bookkeeping is the cash book, which is
similar to a checking (chequing) account
register but allocates the income and
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expenses to various income and expense
accounts. Separate account records are
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maintained for petty cash, accounts payable
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and receivable.
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OO Here the transactions are recorded only once
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Double entry bookkeeping
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EE The Double entry concept proposed that each
EE individual transaction is recorded in at least two
PP different nominal ledgers (sections) of the financial
II accounting system and so implementing a double
NN checking system for every transaction.
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Each transaction must be recorded on the Debit
&& side of one nominal ledger and that same
transaction and value is also recorded on the Credit
AA side of another nominal ledger hence the
CC expression Double-Entry (entered in two locations)
CC one debit and one credit is applied. By this the total
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UU Credit balances. If this does not happen that may
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KK Bookkeeping practices
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EE The process of transactions’ entry is
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performed in several books of accounts.
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The entry is performed in a pre-planned
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manner, following a set of rules made for
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book keeping.

&& The different books for bookkeeping are –

AA vDay Books or books of original entry.


vPetty cash books
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CC vJournals

OO vledgers

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KK DAY BOOK
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A daybook is a descriptive and chronological
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(diary-like) record of day-to-day financial
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transactions also called a book of original entry.
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The daybook's details must be entered formally
II into journals to enable posting to ledgers.
NN e.g. Sales day book, to record all the sales
GG invoices. Purchase day book for recording all
the purchases invoices.
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PETTY CASH BOOK
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OO A petty cash book is a record of small value
UU purchases by the organization. e.g. expenses on
NN guests, postage, refreshment etc.
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OO JOURNAL
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KK A journal is a formal and chronological record of


EE financial transactions before their values are
EE accounted in general ledger as debits and
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credits. If daybooks are not kept, the journals
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are books of original entry, where the
transactions are first recorded. The process of
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entering records in general is called
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journalizing.
&& Date Particulars L.F. Amt. Amt.
Format of Journal -
Debit Credit
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LEDGER

KK A ledger (also known as a book of final entry) is a


EE record of accounts, each recorded individually (on
EE a separate page) with its balance. Unlike the
PP journal listing chronologically all financial
II transactions without balances, the ledger
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basis for the balance sheet and income statement.
&& The process of writing from journal to ledger is
called “posting”.
Date Part. J.F. Amt. Date Part. J.F. Amt
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Ledger Format -
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Besides these books, bookkeeping is also
performed via the means of the internet. It is
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also termed as Online Bookkeeping. Online
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bookkeeping is also emerging as a well known
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format for recording transaction.
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II In the end I conclude saying that the overall
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defined rules is known as book keeping.
&& And analyzing the recorded facts to compute
the final accounts and derive the financial
AA status of the organization is termed as
CC accounting.
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Thank
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&&
you
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UU NO QUERIES
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T PLEASE !!!