Professional Documents
Culture Documents
BASIC RECORDS
Fundamentals of
Accounting 1
Objectives
• Introduction to Accounting Mechanics
• Symbols and Sources and Uses
• Debit and Credit
• Types of Accounts
• Books of Accounts
• A Conceptual Framework of Financial Accounting
• Recording of Transactions
• Ledger Posting
Fundamentals of
Accounting 2
Introduction to Accounting
Mechanics
Fundamentals of
Accounting 3
Introduction to Accounting
Mechanics
The Fundamental Accounting Equation:
(or)
Fundamentals of
Accounting 4
Symbols and Sources and Uses
• The accepted symbol for sources is Cr. and that for
uses is Dr.
Increase Decrease
Liability, Revenue and Profit CR = Source DR = Use
Asset, Expense and Loss DR = Use CR = Source
Fundamentals of
Accounting 6
Nature of Debit and Credit
Inflow of
Resources
Fundamentals of
Accounting 7
Types of Accounts
Accounts
Fundamentals of
Accounting 8
Rules of Debit and Credit
Fundamentals of
Accounting 9
Books of Accounts
• Cash Book
• Journal
• Ledger
Fundamentals of
Accounting 10
A Conceptual Framework of
Financial Accounting
Fundamentals of
Accounting 11
Eg: Subject: Financial Accounting
Cashbook Journal
Ledger
Output: Trial
Balance
Ledger Classified
Summary of all
Transactions
Fundamentals of
Accounting 13
Journal
Fundamentals of
Accounting 15
Steps in Journalizing
• Analyze the transaction and identify the two accounts
that are being affected by the transaction.
Fundamentals of
Accounting 17
Steps in Journalizing
Fundamentals of
Accounting 19
Format of Ledger
Fundamentals of
Accounting 20
Ledger Posting
Fundamentals of
Accounting 21
Steps in Ledger Posting
Fundamentals of
Accounting 22
Steps in Ledger Posting
Fundamentals of
Accounting 23
Balancing of Ledger
Fundamentals of
Accounting 24
Cash Book
Fundamentals of
Accounting 25
Kinds of Cash Book
Fundamentals of
Accounting 26
Subsidiary Books
Fundamentals of
Accounting 27
Subsidiary Books
• Purchase Book
• Purchase Returns Book
• Sales Book
• Sales Returns Book
• Bills Receivable Book
• Bills Payable Book
• Journal Proper
Fundamentals of
Accounting 28
Summary
Fundamentals of
Accounting 29
Summary
Fundamentals of
Accounting 30