Accounting Process By Recording of transaction

Accounting equation: analysis of transactions using accounting equation.

• Rules of debit and credit: for assets, liabilities, capital, revenue and expenses

• Origin of transactions- source documents (invoice, cash memo, pay in slip, cheque), preparation of vouchers - cash (debit and credit) and non cash (transfer).

• Books of original entry: format and recording - Journal.

• Cash Book: Simple Cash Book, Cash Book with Discount Column and Cash Book with Bank and Discount Columns, Petty Cash Book.

• Other books: purchases book, sales book, purchases returns book, sales returns book and journal proper.