By Y P Singh

ISBN-10: 8122421539

ISBN-13: 9788122421538

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Additional info for Accounting and Financial Management for I. T. Professionals

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50,000 on July 1, 2003. e. capital account will be opened. Book-Keeping 27 Rule 2: Rule 3: Rule 4: Rule 5: Account involved in given transaction other than Capital A/c is Cash A/c. e. Capital account; and Cash account Capital A/c is a personal A/c and Cash A/c is a real A/c As per the rules of debit and credit applicable to personal A/c “debit the receiver, credit the giver”. e. Cr According to the rules of real A/c “debit what comes in, credit what goes out”. In this transaction, cash is coming into the business, so it should be debited.

6. Distinguish between: l Accounting system and l Financial system. Q. 7. Explain the limitations of accounting information. Q. 8. Describe the users of accounting information. Q. 9. ) professionals. T. 1 INTRODUCTION Book-keeping means maintaining books of accounts. g. ) Organizations act as legal person. Real A/c (Related to assets) Tangible A/c (These accounts relate to things than can be touched, felt, measured, etc. g. g. ) These accounts deal with expenses and losses, income and gains. For example, rent, lighting, insurance, dividends or income received or expenses for services received by the firm etc.

3. For details on Tally see chapter eleven. e. recording transactions in primary books), all the amounts are posted to respective ledgers known as secondary books. In Journal, each transaction is dealt separately while in the ledger, they appear in a classified form under the particular account. A separate ledger is opened for each type of account. These ledgers are termed as general ledger. A ledger has two sides: (i) Debit Side (ii) Credit side Posting is done in the relevant side of the Ledger based on the Journal entry.

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