कार्यसमिति प्रशिक्षण

What Is Accounting?

Accounting is the process of recording financial transactions relating to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to supervision committees, officials, and tax collection bodies. The financial statements used in accounting are a summary of financial transactions over an accounting period, summarizing a company’s operations, financial position, and cash flows.


A bill is an invoice received from a supplier, on which the supplier states the amount owed by the recipient. This is the primary source document for trade payables.


An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller had provided the buyer. Payment terms are usually stated on the invoice.


Daybook is a book of original entry in which an accountant records transactions by date, as they occur. This information is later transferred into a ledger, from which the information is summarized into a set of financial statements.


A ledger is a book or collection of accounts in which account transactions are recorded.


Journals are prime entry books and may also be referred to as books of original entry, from when transactions were written in a journal before they were manually posted to accounts in the general ledger.

Accounting Equation

  1. Assets =Liabilities + Owner’s Equity
  2. Assets =Liabilities + Income-Expenses
  3. Assets + Expenses =Liabilities + Income
Assets Equal Liabilities Plus Members’ Equity Total
150,000 = 100,000 + 50,000 150,000


Assets + Expenses   Equal Liabilities + Profit Income Total
*Land 50,000 = Loan 100,000 100,000
*Receivable 50,000 = Payable 20,000 20,000
*Cash/Bank 40,000 =      
*Utilities Bill Payable 10,000 = Profit 30,000 30,000
Total 150,000 =     150,000

Rules of Debit/Credit

Accounts Debit Credit
Assets (+) ü  
Liability (+)   ü
Expenses (+) ü  
Income (+)   ü