Dear Teachers,
These slides have been prepared based on the NCERT syllabus to support you in teaching Plus One and Plus Two Accountancy and Computerised Accounting.
Please review and verify the content before using it in your classrooms. If you find any errors or have feedback, please let me know.
Mujeeb Rahiman C
HSST Commerce
GHSS Pattikkad
Malappuram Dt.
✉️ mujeebchemmala@gmail.com
9995983075 �
Chapter - 3
Recording of Transactions - I
Rules of Debit and Credit
All transactions are first of all recorded in a book called “Journal” (Book of Original Entry). Transactions are entered in chronological order.
The process of recording transactions in journal is called “Journalising”.
The book in which various accounts are opened is called “Ledger” (Principal Book).
The process of recording transactions in ledger is called “Posting”.
Posting
The process of recording transactions in ledger is called “Posting”.
Account
An account is a record of all transactions relating to a particular person or item. In accounting we keep separate record of each individual, asset, liability, expense and income.
Example : Cash Account, Sunil’s Account, Capital Account, Furniture Account, Salary Account, Purchase Account, Sales Account etc..
...........................Account
Debit Side
Credit Side
Dr.
Cr.
An account looks like a 'T'. Because of its shape,
the simple form of a ledger account is called ‘T’ Account.
Date
Amount
Date
Amount
Particulars
Particulars
...........................Account
Debit Side
Credit Side
Dr.
Cr.
Debit the account
Enter amount on the
left side of an account
Credit the account
Enter amount on the
right side of an account
J.F.
J.F.
* Journal Folio (Page number in the journal)
Group of Accounts
Assets
Capital
Liabilities
Revenues / Gains
Expenses / Losses
Cash, Furniture, Debtors etc.
Capital
Loan, Creditors etc.
Sales, Commission etc.
Salary, Rent, Purchases etc.
Rules of Debit and Credit
Assets
Cash Account
INCREASE
DECREASE
Goods sold for Cash Rs. 50,000
Paid Salary Rs. 10,000
Dr.
Cr.
Rules of Debit and Credit
Liabilities
Creditors Account
INCREASE
DECREASE
Purchased goods on credit from ABC Ltd. Rs. 75,000
Paid to ABC Ltd. Rs. 50,000
Dr.
Cr.
Rules of Debit and Credit
Capital
Capital Account
INCREASE
DECREASE
The Proprietor introduces capital in the business
The Proprietor withdraws some money for his personal use
Dr.
Cr.
Rules of Debit and Credit
Expenses / Losses
Salary Account
INCREASE
DECREASE
Dr.
Cr.
Rules of Debit and Credit
Revenues / Gains
Commission Account
Dr.
Cr.
INCREASE
DECREASE
Group of Account
Debited
Credited
Asset
Increases
Decreases
Expenses / Losses
Increases
Decreases
Capital
Decreases
Increases
Liabilities
Decreases
Increases
Revenues / Gains
Decreases
Increases
Rules of Debit and Credit
MUJEEB RAHIMAN C
HSST COMMERCE
GHSS PATTIKKAD
MALAPPURAM DT