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Accounting

Definition of Accounting

Accounting is a science of recording, classifying, analyzing and summarizing of all business transaction after this we able to find out our financial and revenue position in a particular period.
Double Entry System of Accounting

Double Entry system is very scientific system of recording of business and professional data .We can easily record the transaction, if we utilize double entry system of accounting. Under this system every transaction affects two sides of accounts. One side is called debit and other side is called credit. One part is profit receiver and other part is profit giver
On this base accounting equation can be made by us.
Accounting equation on the base of double entry system.

Liabilities +Capital = Assets

All time L+C must equal to A. No transaction can differentiate both side one side is asset side and other side is total liabilities side include capital.

Rules of Double Entry System

For Personal Accounts
Who is receiver = Debit
Who is giver = Credit
For Real Accounts
What comes in =Debit
What goes out =Credit
For nominal Accounts
All expenses and loss = debit
All incomes and gain = Credit



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Accounting Education: Accounting
Accounting
Accounting Education
https://www.svtuition.org/2008/03/very-important-questions-of-tally.html
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