Recor dmg,

oleu9 and
pmesanumg of
Accountancg finanuad informalisy i
mianuna fal manney ".

ifyma omd
ceountmgThe
art of recordmg,
elas
summauzmg
A toms o mnov
,
monu
amd
tramsacum
a Sini camt nuias
p u r t at a s , o Rna
Prnarmia
whuch a n ,
andevends the esulb hereof.
and m turprettn g
choractin,

CAIC PA, 1441

The prowm o idendi kma, muasunmg md Commnucakma

eeno mic mormaiuim to permuk mformmd udgmunty om
duminu by uwms omor malunm

CAAA, 1aG6)

Cye Test
Inuanal C na
S0

Cscla uot
sAgnmumt (1o)
(2-5)
rOu nesentaluso
Repost
(16)
 wndemntals
ofFnanual Auounung 7lo7 2022

ONIT- Ol
Aurnnung

kuow what
h a ae
, to w
hoppennq m a
compomy ha ts ov

fer valualung
he slat o h
.
Ompamy
Assee bquy iabikty
Asset Wheh om genanale
muome/ cashtlew
ianu ty keas boomngs Any han4that has to be paud back
Equib CapitalL owrurship capatal hanud
Nornal Copntal Lmoy
mpmmy. The urst lolhli y g
T foyoack he equy to h hau hsteleus
The Combamy

Eauty tals he prm o Cash

hand
Suuni tus | Invstment
Thun t can be tosmud as

A Et L Auouung Equauon

Eolden Tules off accounlng

23 0 2022

LEd imd > th uali hty u lunlud to capital ot the company

Th topital, he/he uill
thene u a low byend
only thu copital ot my thunq mone.

Kumalus
(P) Led. Privalo
 Funceplu Awoumun

al the masacuons
ppont
hat
Prneplu
Ay company Stnlid 4 enpec
Concnn
Conept
also
hulure
.

m
h
to b fnciuonal

nll he a

hak nY
mpay
d ong ncn
aumid
If
cmd owns ne Consedind
Compamy
Seperate Entuly :
w CarpAY ukenan
adial hu
Sepuate
alfueial human whuch
ConpamY trualud as cn

by h louw
enli Hed
nas pouwns by

Acual Concept: - Tre rneasaelnas_should

be Only he

hould be onseolurud The hulin gauns

rs
huline
ualued jun /acnmdd
onmelrLd enly he 1Uho

uh along ilh fulne oss

uwordid

Thno wil be 2 as cpu emy

L Dual Aspect Prnenp
Credit amd Debit
Hnamaciion

aluways
Then wll be two aeconls -tttt be m volue d m a

On will be udild and oher debted

tnons auon
OCweS
1Somuo ne eus mony to Compay that dala i l l be

ppearungJ m balancunq h u t c an Asct

owes monuy fo gomeone, Ths dola wll be
Compamy
Kioli i y
peann m blanung shul as

Asuts/ iabiuty hould be settled | vealund wimun a en

Thu ane talld Cuanunt aut | ka' Cmunt 1uaiuty

Fid luakiu'hy | Frxed liahlity Anut l i'abitly than u

nwt tud wi thun a y

ActounbE

can
be clam fud as
Pers onal Gwnd by porson oy
shop
(whoever has name can reau t)
Real Al

Nominal Alc

Rol Ale also u t Alc All and Come under thu

aNceumnt
tnune, kand, IP, Cosh, thuidony wny thmg
Con cmond as Cn amat by Compomy

Nomanal Ale ny aall frathamag adsanct untac

acceunt
C Salous arcsmb, diu Count
aX cOmmismsn aMmt

AC the ekpendilne, comu unour nomunal acceunt.

Cex pendudune wthout ony nelinn m mony)

AlL dho mcome u h whch dlrtsnt nqune amy

undn nomnal uccrunt

nnn coms

retann u d
CServw b CunAoluud
cemt as

mon tomgi Hu)

3 os 2022

Nau ot Accownwnq
systomal
Teovds buuntm rMscaAn m a

t tool uhuch

MomnY
amumpusna
emd conVen uns
amd on ome Pruncpl

En bunws Wanaluna muwna Um

a

wel n art
Os
Eu boh a S u u

Accountma piocs
PROCESS
UT PUT
INPU T
Inormalin
dunti hnm towwms
Racordmg
mony aclun
clayt
Summanimg

mal ma,
CommuunucouuMa
 Business ransacluoon

An event that mus meoywmable m tYns of Mony and

have an mpact ovor the Anantial erauon of bu

evens that can be meaured mone toay a m eme

weude
ncCouning eLovds

éach hnanctal tansacin Should be aulhoaised by a

Yopensite ponson amd Should be Suppea bd u SoureF

documenls

Seune do umavris Saln wvoke, cash Yetupt, urchase Invoke,

Pawont voucher Stalamunt ofcucoumt

B: onchamg PYomsovy hotu

choraetoYuhcs Monelony t vent

Atwa Anamual posi tuon
Belongs t6 buinw nut to the ownM

Ini tuatud by om ouho nu zed pomsm

Suppor ed y a s o wr olocumunt

MAJOR TYPES oF FINANTCAL TRANSACTIOA

Sales Purchase
PamaiuoM m which prmopomty Trconsoctusa hat ne
to neuned a buunes
amsumed om buyr
se For money o redlut odd Scrvces reiened to

amour busunes
wns o accsnlma
TMomagnus, Ownor (s), Pmespecuwe Buar,
Bovnesd,
Tak auori bis '% ospecuve pomtnoa, Investu
mammamial Stum 3s 2022

Balmusut fmanial stalimnt hat hsvws 4he ammts

tnu
tiai wy equuy at o shecilu po mt m
amd owhurs

U a Ppamed he Sont deug d a onlh lgew.

SBalamant mamual potlton
a -n Stalamnt o Can
Income statmunt Retauned aunmy

amoumdh o
nuome
Summarlu hs specfi pena0d
Shaulemu bwwMus r a
mwred b
he RM
And unins 's
Mionwme a
A yar.
Monh o-
m.om.cAa) Pn foY m o m i
w me aumd ear nmes
o the dhamg
ummomy
a
mnvny
2kam oned dmwng a

prort) thad hawe

Cmtlamd
Sum an mon M a w
wn
stech pauuvd o
omd coh
Stalamunt ASummry the Cah uieptn
wme, guch
o Ceoh Ptow

a pe ponuod
P mumn m

monm

mdolid b mamuial staumnt

Imporienttom

Ast, uak1uby
Ravenue, xpewwa Caputad,

SUBFIEL0s OF AccoONTNG

Finanual Accounng
Manaecmant Accoutung

Cost Accounim
-he nat Tenult Fr cm

Primy hAps ditin mnaum

md mamia
ccounmg pend
 Ccounlunq Conapt
Auountma pruncuple)
Acountmg (onvenuin

Accountng conapt buou nity

qomg concnn
AccTuds a makhng concupt
Seper ale yaluauom poincplo
Histoi cal Com capt
Mauriauty
Mony meanwe ment
Reali zaus

Business enk
bununns nuay md t oones (s) orne two SAperate
The
istence n t y
to o t
yThin u done so that buunes ul eounue wlo * Ownr
Or chomge ot Own

mcsmUD omd erpense of he

Any briVate omd 1penma
be reaed athe mcome,ond
ownr (S) hould not

e p e n 4 of the bwine

Exom ple
the ownrs ho ura hould be
nsrane pmemuum for
ha ouuuiy
encude4 hom the apens

.Any paymevts

Comq con
openeusmal onislince r
The busiis wIl Csnti hue m

fore Cea ble Pun

Funawcial stalemands showtd be mupemed m omg

Coce no a u mles
AcCro o malkhvna toncept

ome ucoqvize d whn n y ome ened, bul nst whum

Reueuun

mucil ve d
whim
mewed bul nat
m Nco nuud
n thuy ome ,

henn

em Paicd

dutun mmed hy
the
MCome fr the peuod à
enet & m h
2aMne
mcred
s macmg p e n s n

penwd

peud f In
pemiod but
murved
mthe to ubwmg
wnd
.KpeMM vepensu
napaurment
m a z d ao
chould b
advnce

voualon
prmaiple
ate m
Super a l i hty
and
amet
tribulud
to am

to e
Amount

balamcu h u t
deamued ehwatuly
item must
be to amme
Each added up
mut
Than be
valuahon

.&pera
hiut kgunu.
thebalana
at

on Stock n e
os on

Hrstorical Cost
shut at hu cost ot
salance
he
Assutu ghsuld be shovwn on

Cuunt valune
purchak tad o

acquialisn
at tho dalk o
s veeorokd
anet
The eest of fAked mod

cet
mcudles
all tnp endllinu
Cest The acqutchsn tt meludhd
hu
mtendid
m tedd u
u se
e..
tm b
e puu the
pmupam
amct
vms u r a n c e o
changin,
o he aKat, tne tGht
mvocc Price
chstaullalim Cot
 Dual aspect Conapt

Thui h e basic Concupt o* ancoutma

evwny bunnum Mmsachon han a duaf a t .

IP M X smt he bwunim wi the capi tal Rs

onu omd it has omt ot Rs 10,ooo ww n the 1o000
o
thun
bwns has to Py o
MyX uM
10,000, whdh v ta keu
ropte tor's capital
Capi tal C tiabii by)- Cash CAssets)
6, voo (O, O00

Suppoce thay bovgMt fuatr fuani twne

o 3k
Liabiuky = Assats

Canital Rs Loo06 Cah 1000 f frinne 3000

Suppesk Xs irm honow mony hon hmk F 3ok

Lialoi'
40 40k

Capital oo00 t 20o00 Caoh 3 t k t 3k fm hoims

hun ton alhe be talluol acouriung equalim. the ontuu slm st

double u bok kupma s baud on thin Cocupt

Ruauzainm
Keme Rununw should he saiasel Yconitud www wa
C o d mic ackivi tus have been com pletz d
Saln oYL
Tc0qi ud hun gods ome Sold od ouwmnUd
*CABo mays o Sa vca ninenid

Slung 9otds on
onusit Tucord
, an sale MM
MoruyWasUMemunt

dbumns one mundud m

Al
mas acums
measumimunt
I t pnovden a CmmAn wnt e

and 4h ekuune
ket ondi tions, tehnologunl chomga
Ma m te
bma
Uuld nst be didond
namagm

ls l22
Accountmq ConVen uor
omd tnaodisns
cus hoe usBoms
mcue
o n v e w u o n

,Th n m
wweh uw

Prudene or
iomer väusm
CAs tency

Matnaluby
all di'sclosaure

Consey va us m
Prudenue nuaksnd pnouts
Oniy
ome
hot emi ujpled pmat o s .
md mo ed m
Rvenus
Ctanly
ove miLvgnu
wih
aso na e
and loeseg
tor all
known expensa
made
u cnus
ot c ut.
'provinon valuaun
valualuon ot
amd ePe
he maporlnd prokr t
'minimizLd

Consteny
muhods
accounnq
chooe the most Sutahle
m Nenny pemuod
lovuslnl pply them com m M c
denud betug om
Cos
new mehod
Chanaus
u e d e u view.
dronaie
ekfhe
Cm hane
accowntun4 me hod
t
Change m
 Materiau ty
An expunion o he nelálive gnidican or importan o

ular malu m he tbninct ohenana al Slatm

slalnt
pan k
a a hole

mpo fo he mawial delauls omd qm

t focuses on gummg
tns1gancL ditails
Immatn'tal dunounds may be aggnegated wih h omounb ot

Sunilan a 87undian and nud nob be nti d

sepn ay Cpe bey ( surndrg enpenu

Full dis cl6 sure

Acteuniunq eporu should durclose fully and fawly he n tormalin
mtoTmalion

PuYport to nepmsint.

ehould pen he ulu md sui unty du cdge

be mupared as

Actountun g Equation
Asseb

Labiuty une sutlow ot anut

CwoYs equtyAmount by whch busins Asset wre eacuds he

busLnurs ualbi Luly

Doulde enmy Beok eepn9

 Typesof Attounts

Account

Pon s o n a l account m porsohal actount

Real aceunt Nomunal

Au iual CACcount
Nalnal Ripnestvntale
pensons persons
Per
sens
Acount | Ccoun t
a ccounts3

Towngi ble Intomg1ble

Raal Alc
Peat Alc

cnsausym

YeLordma
aoumt
m
nsen's orsonal e knowm
as a
naral

Nakral huunan being

divndual
wim m m (egKrichna Ale)
pmsons pensonal actownt

Hnanial
veLorclun
alcount
Alc An
person'Pnsonal or
Avtihual reated by law
artiutal penson
hansachons wih an atcount
personal
heial bersons
Calud an m
olher ww
g: M/s velu'cvnce Mar t

Rupresentauve persns sonal Ale

 Rules of Doubk Ehny sm Golden Rules of Accounting

Debrt h e eciever
Pensenal
Cudit the evievar qlvev

mn
Debit what Comes
Ra outt
Credit what goes

Dtbt alt npansis md lous

Nomunat
momn omd gems
Cnadut al

all Dedi ts Lonnectd to Asset

all Orudua Connected Liabi uty

Dehit omd Cnedit

Run

Acount Ineneased by deeneaud by

Assebs Debit Chedut

oTedit
Debit
evpons
medut Debut
abiituo
Creduty Deloit
Equky
CrectE
Debit
RLn

wwch eww. wie d u

 actountu volnud And nule o Debit n Cnsdl
ldeviu fy the

Rent Alc pAd fo kichna shna Ale

Rent patd
Cush Ae tash Alc

Salarg patd Salary Ac

Salary Cayh Ale
Machunary sold
Cash Ac Machuniry l
Coh Alc
Cash alc Rituvid rom knh
Reuvedy Kar hi ANC
n ust n n est AlC

10l0s 2022

dubt qmedhd
wwblued md u l of
Tdurluky mmoils

Debie
.
Rent Alc -

Nominal Alc
Rumt pand
redit
to Coh Ale -

Rzal Alc

A
No myau
Sa lomy AlC
A/C- De bi t
Afs Persontl
pid peasanal
Salas
redit
Cash A Real tle

IntororotAT-Homrat AAdut
Riuwnud
a n nunt
debut
Caph
mdd
Alc- homi -

to In oAf
S m a - DebiE
korshna AIC
pnd to kmushuna
Real Alc - nudit
Covo h lc

Rad Alc
Cooh Alc - Debit+
Machi num td
M a alåsbet
toMathinor y ac al. - toeert Cnudut
Ral Afc

Ca h Al RLal Debit
Rund nom Koarthi P s nal -
Credit
Korn ha Ac
L
hansacuns Ale mvolved Naluu o e | Debit ( tneded

t)
Busins hans acluam (2)
Jona enra
(Souce documnt) Enuy Ledg

mamcLal Sta imant

Bsalmci sheet
rial cu)
Income Statmant)|

Accouwig ycle

Retov dng of
soms catbn
Jous nal
Fmmued
statamenu
Ld
Closm
nrus

T komace
Adusled toua
balance

Adjstmant
Cnmuls

RLOTdmg o ramsacin:
al a veurd o Anancial ronsocunu o du by dat.

a jounnal has been difvnud a the book omuw

haditonally
appmsuatu whon mamaArd
Chwy. th dlvuuan oas mone

thum
coaaM m a
enal muy t manualy porlomg
auowvd m the mmal A T a Fulbsi duamy kdyer
SwY
ONIT- O02

data in Joun nal of kalym a Co.

fntn followmg

2cc8 Jan
m cagh
Commencement of bunin 1nvnms 10000
Puchacd (amd for cash 20,000

Jounnali znq Rulks

Crude Yule

Gvs, has more weughtage, write aive

Anyhwiq wheh
-Credut khe
n the uond lnt

has ws wushtage r recue m

whuth «i,
Any hung
hmt u -
De but n a
thu

JouTnal ény foTmat

dd mml4y Racie vor 4lc XXXX

To hiver ale XXX

Datu Amount
Porti culavs LF Amount
CDr Rs Ter7 Rs

2008 Cash l c 0500o

Jan 1 To Capital afc
40, 00o

Ceeing cash bo ousht im

0s capital ]

Lnd a/c 20 000

D
To Cash alc 20 0 0 0

Purchan alt Dr 30,000

To Cash ale 3 0 00O

Arun nlc

Ho Cash lc
caaed

mmmumnt busnu

2 Pmchand lmd n canh 20k

30 k
prchand gmd for Cmh

Pwrchu wcds mo m 1ok

Sune sh 0 Cne dit

20
sold beods fr Cash
5
to tnuu
Sod godds
n ne dit

300
Pad hiesht

fo chri tes
Donalud

1200
sal ain to Ramoh
Pand

Bmk
caoh mlo
Deposited

wi hdaaton
mom mk 4k
for

wi h druwn
fnam Bemk

fo perS mal

chonrsed munnt e n
Ik
13
Capital

Rcu ed
Ront

Loom mm Bmk 20K

15
 Datt PA ticulars Amount
CD73 Rs Amoun

Dr 10, 00 0
JAn
Cash alc
To Capital alc
40,000o
Beung cash brought m
Capital
D 20, DOo
2 Land alc
40 Cash alc 20, 00bo
beumg pur chascd loma)
3
Goats alc 30, ooo

to o Cosh alefc

pur ehand gecde)

3000
oods oalc
Suresh alc
Cbeng sold good]
10, 0o
cash astc
pr 20 6ob°
to Sale al
20 Bee
Bemgscahs salu]n)
Atun ale
to Sale alc

Bemgcconsdib
cTe dil]
sales
Freus afe D 300
te Cah ale
CBeing ruugnt paid] 300

Donatun aalc
téash alc
Bemy donalin paid
Salany ale 200

to Couh alole

Beng salaiuà paid]

Bank alc 600
to cash ale Dr
CBng caah deposit mla
bamh
Cash alc
4000
to Bank e

wihchawn aui th otce 4000

 Dxawmg ale D OOO

to Bmk alc
6oo0
Luih dawn foy parso nal ux)

nha lale
3 ko Capi tal ale
Ceemg pad mbrist3o
Cuh alc
t Raat oal e

BCamy nReuued ddentJ

20,ooo
Coh a(c
20,00o
Bomk(e
ram brmk)
Coom
Cepom duiune)
Kalyonn an Co
)mmrt pond b
nomunal af6

ponsonal ac.
mk afc

oe 2022
wneluons of Jowrnal mts the
vmto
cmalyud
emaystd
tnomsachon
tach tnons
cach
fumeuon to md
md
Analyical Ths hulps to
eneded
t ntdd ospect.
aspect.
the busms
md altet
aktret the busmes
dibut aspect will f m a n cially
wil tman cially
mansacuan

how each lowmguage

out e muage
uu
b mmen
u a
Accontomy
Atountonag
fumcuan:
Recordmq

hulps to uuord
wfuch
 Advankage of Journa

Chrono log cal o vetord

posi bi lely ot
mors
Munumim
Namauovm
- Hefps t unalue the acunts

fo ut
t e ueconds ma actionj
wrhn t happen pom to
gect a hetaulud day
to day nfor malkon
and d etck nhe hnancia
the nalune of tmans aclim
he busuns dukor mnud by wor dung and
poubion
asput
analtsng
mle debt Cnudit
nicordid rans aclin
p l a n a u e n of

Journal y the baus ot dlgn poskng mel the ultimale

rual balanct

Compotund Jeurnal enhry

paid Salar ies Rs

4,000
June 3o pavd waas Rs 3,5o0/

paid Cbnmusstón . Rs 2, 500

lall nommal ale)

Thuo hows al expendutue
Amcunt Amount
ar uculors Ccr Rs
Dau CDr Rs

Juni 30 wage al Dr 3500

+0 00
Saly ale
25 00
Commson alc
oooo
+o Cash alc

4O00
Stock
wih cwmh 50,o0o, plunt T 24,000,
Stomiud bu s
50,00o
eash Alc
2 4 00o

Plant Alc Dr
4 000
Stock Al c Dr

to Capiel Nc
 Cwh 8, 00 and to Ms AooYwa foa lo, bOo
So ld ooels o
Dr ,000
Cash a
0 bOO
Ms ay wal al
1, O0o
to Salus a l
sela for cash
C Beung 20cd
s o c o and
on onedil 10,co
las duomt 60o

SAud hun account

Agamua
itMs

Cash alc 600

discownt alc

o Ms Agarwal Alc

ramaacus
Jouxn aue
he 00d
Rs 1o o,
me6
wi h
bus
Anvrs Stamted
2016
ip3il Ol, he monh ne
on
moms aensrs
for
omd o Cush
Cash Cnedit looo

ture
foy
uni on
Pu chas v C
CAa
2 000

oods
Purch Store
Shoxe
khalud
Retoud
Relal Cash Sales
omd
om
fnom
12, O00

Bnehung
to Rh an
Sold foccs
ue
tor parson
al
5oO0 2000

worh
hdreuo e
ner
wi
Ow
o
ff 5D0
?5o o

Ritail stove
khalid
aud khan bro dhurs
ooo
mom
O,
R e ceved
2 oo0
pense
Paud sal arieo