accounting concepts

calie
natures or element of accounts
bal capital equity/share capital/reseves and surplus/authorize
bal assets current assets/fixed assets/cash/bank/account rec
bal liablity current liability/non current liabilty/account payab
p&l income rent income/sale income/assets sales income/com
P&l expense capital expenditure/revenue expenditure/salaies e

rules of debit and credit

dr cr
capital decres incrs
assets incres descres
liability descres incres
income descres incres
expense decrese increse

cas sale means company made a sale on cash rs. 20000

income c.asset
dr cr
cash 20000
sale a/c 20000

sale on credit means company made a sale on credit customer will have to pay /not pa
dr cr
account recevbale 30000
sales a/c 30000

out standing salaies expenses salaies have to be paid

dr cr
salaries expense 50000
salaies payable 50000

salaries paid through bank

dr cr
salaries payable 50000
bank 50000

sale on creidt 100000 within 10 discount 10 perc

dr cr
account recvable 100000
sales 100000

dr cr
bank a/c 90000
cash discount 10000
account recevbale 100000

depreciation expense dr
allowance for depreciation cr
/reseves and surplus/authorized capital
assets/cash/bank/account recvable/inventory
current liabilty/account payable/vendor account/ salary payable/bill payable/rent payable
ome/assets sales income/commission income/interest income
revenue expenditure/salaies expenses/rent expenses/utility expenses/entertainment expenses/taxes/depereciation expenses

tomer will have to pay /not paid closing entries

dr cr
incomes expenses
4000000 4000000

within 10 discount 10 percent till 15 days 5 percent, after 15 no discount 30 payment not recved interst will be charged
 sale discount is contra income account

dicount recvd rom vendor is other income account

3000
3000
eciation expenses

will be charged