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Order of Accounts - Hints for Journalizing

Records recording exchanges identifying with people or firms or organization are known as close to home records. Individual records may further be delegated :

(1) Natural individual's close to home records: The records recording exchanges identifying with individual people e.g., Anand's A/c, Remesh's A/c, Pankaj's A/c are named common individual's close to home records.

(2) Artificial individual's close to home record: The records recording exchanges identifying with restricted organizations. bank, firm, foundation, club. and so on for example Delhi Cloth Mill; Hans Raj College; Gymkhana Club are delegated fake people's close to home records.

(3) Representative individual records: The records recording exchanges identifying with the costs and salaries are named ostensible records. Yet, in specific cases because of the coordinating idea of bookkeeping the sum, on a specific date, is payable to the people or recoverable from people, finance and accounting journal .

Such sum (an) identifies with the specific head of consumption or pay and (b) speaks to people to whom itis payable or from whom it is recoverable. Such records are named agent individual records for example "Wages Outstanding Account", Pre-paid Insurance Account. and so on.

Genuine Accounts

The records recording exchanges identifying with substantial things (which can be contacted, obtained and sold, for example, merchandise, money, building. hardware and so on., are named substantial genuine records.

While the records recording exchanges identifying with. immaterial things (which don't have physical shape, for example, altruism, licenses and duplicate rights. exchange marks and so on., are named elusive genuine records.

Ostensible Accounts

The records recording exchanges identifying with the misfortunes, gains. costs and wages e.g., Rent, compensations, compensation, commission, intrigue, terrible obligations and so forth are delegated ostensible records. As of now talked about, any place an ostensible record speaks to the sum payable to or receivable from specific people it is known as agent individual record.

Standards of Debit and Credit (characterization based)

Individual Accounts: Debit the recipient, Credit the (provider)
Genuine Accounts: Debit what comes in, Credit what goes out
Ostensible Accounts: Debit costs and misfortunes, Credit earnings and additions.,
Insights for Journalizing

The accompanying exchange will help in diagnosing the exchange so as to discover which records are important for passing the diary section.

Treatment of money/credit exchange.
Peruse cautiously the accompanying exchanges:

(I) Purchased merchandise for Rs. 1,200 money. .

(ii) Purchased merchandise for Rs. 1,200.

(iii) Purchased merchandise for Rs. 1,200 from Arun.

(iv) Purchased merchandise for Rs. 1,200 from Arun on money.

Exchange (I) and (iv) are clear as it has been explicitly expressed that buys have been made on money. In this manner the passage is :

Buys account Dr. 1,200 To Cash account 1,200

Exchange (ii) and (iii) are not explicit concerning whether the buys are for money or using a credit card. Anyway exchange (ii) doesn't make reference to any name of the provider; hence it suggests that the buys are for money. Also exchange (iii) makes reference to the name of the provider yet is quiet with respect to money it infers that buys are on layaway: Thus the passage for exchange
publié le mercredi 09 octobre à 16:28

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