Accounting Its an art of recording, classifying, summarizing and interpreting.

Debit: The Benefit of receiving or comes in Credit: The Benefit of giving or goes out Single Entry System: Only Cash Transactions Double Entry System: Both Cash and Credit Transactions Personnel Account: Debit the Receiver Credit the Giver Eg: Capital, Banks, Persons & Organizations Real Account: Debit What Comes In Credit what goes out Eg: Cash, Goods, and Assets & Liabilities Nominal Account: Debit: Expenses and losses Credit: Gains and Income Eg: Salaries, Rent, and Sales Accounting Process Transaction Journal Ledger Trail Balance Trading & Profit & Loss Account Balance Sheet

Account Groups: Address of the Ledger Ledger: Its an Individual Account-which can be used to post the transactions Journal: Where Day to Day Transactions are recorded Transport Charges On Goods Direct Expenditure Traveling Expenses- On Person Indirect Expenditure Simple Interest: This is calculated on Principle amount Compound Interest: Calculated on (Principle Amount + Interest Amount + Interest Payable) Credit Note: Sales Returns Debit Note: Purchase Returns Revenue Expenditure: Profit & Loss Account Expenses like Eg: Salaries, rent (we get revenue from employees) Non-Revenue Expenditure: Balance Sheet Expenses like Eg : Assets & Liabilities Cost Centers: Departments like Sales Dept, Service Dept, Music Dept, Admin Dept etc. Bank Reconciliation Statement: Difference btw Cash book and Pass book Check issued but not collected Check issued but Dishonored Check directly deposited in bank by customer-not recorded in cash book Check Received Deposited Dishonored Mistakes in Pass book (or) Cash book Debited/Credited in Bank Bank Charges, Bank Interest on Overdraft, Commission charges. etc., Check received and entered in Cash book- Forget to send it to bank Check sent to bank but forgotten to enter in Cash book

Drawings: Used for Personal Use Direct Expenses: Wages Freight Charges Transportation Charges (Carriage Inwards) Fuel, Oil, Power Cost Packing, Labour Indirect Expenses: Salaries Rent Office Expenses Stationary Telephone, Electricity Charges Other Exp

TAX Tax is main Revenue or Income to the Govt. Taxable Categories Services : Hospitals, Banks etc., Manufacturing : Production of Goods Consumables: Who uses the products they need to pay Tax Trading : Good Purchase & Selling Taxation

Direct Tax Directly Paid to the Govt Eg. Income Tax Men 0-180000-No Tax Collected Directly Direct Tax is on Levied on Persons Applicable on Persons, Individuals Only for Rich People

Indirect Tax Which can be recovered/Collected by others Eg: Sales Tax, VAT, Service Tax, CST (Central Sales Tax)-outside country Collected Indirectly Levied on Customers Applicable on Goods Applicable for rich & poor also

Wealth Tax: Property & Home Property Octrai Charges: When we transport animals, passengers, good we pay Octrai Charges to Govt as a Tax. TDS: Tax Deducted At Source Eg: Technical Services 30,000 Exemption, Professional Services, Rent 180,000 (Exem) TCS: Tax Collected At Source Seller Collects Tax from Buyer-when seller sales scrap to buyer he collects from the buyerTax on Good which come through Nature Eg: Scrap Sale,Forest Product Goods - Tendu Leaves Tea, Coffee 5% Alcoholic Licker 1% VAT: Value Added Tax Indirect Tax (Sales Tax)

PAN Permanent Account Number TAN Tax Assessment Number