Fundamental of Accounting and Tally Prime Notes

Fundamental of Accounting and Tally Prime Notes for Self Study and Computer Coaching classes. Step by Step training Notes with Practice assignment.

Definition of Accounting

Accounting is the process of identifying, recording, classifying and reporting information on financial transactions in a systematic manner for the purpose of providing financial information for decision making.

Types of Accounts

There are basically three types of Accounts maintained for transactions

  • Personal Account
  • Real Account
  • Nominal Account

Personal Account: Any individual person or any firms or any company or a bank is considered in a Personal account. For example:-   Rajesh Singh, Muna Enterprise,    Wipro Pvt Ltd, PNB Bank, Capital etc.

Real Account: Account of any physical things. The cash account or goods account are examples of Real account. For example:-   Cash, Land, Building, Furniture, Computer etc.

Nominal Account: Account of any invisible things that means that things are in terms of cash are examples of Nominal account. For example:-  Discount, Commission, Salary, Wages, Freight etc.

Golden Rules of Accounting

Personal Accounts

The ReceiverDebit (Dr)
The GiverCredit (Cr)

Real Accounts

What comes inDebit (Dr)
What goes outCredit (Cr)

Nominal Accounts

All Expenses or LossesDebit (Dr)
All Income or GainsCredit (Cr)

Entries in Account Book

1. Suresh started a business with cash Rs 1,80,000

Cash a/c  Dr180000
To Capital a/c           180000

2. Cash deposited into PNB bank Rs 55000

PNB bank a/c  Dr55000
To Cash a/c        55000

3. Purchase goods for cash Rs 22000

Purchase a/c Dr22000
To Cash a/c        22000

4. Bought goods fromSona Enterprise Rs 72000

Purchase a/c Dr72000
To Sona a/c        72000

5. Sold goods for cash Rs 16200

Cash a/c Dr16200
To Sales a/c        16200

6. Paid rent for the year by PNB bank chequeRs 6000

Rent a/c Dr6000
PNB bank a/c        6000

7. Withdraw cash into PNB bank Rs 40000

Cash a/c Dr40000
To PNB bank a/c        40000

8. Purchased furniture for cash Rs 5000

Furniture a/c Dr5000
To Cash a/c        5000

9. Sold goods to SuperRs 12700

Super a/c Dr12700
To Sales a/c        12700

10. Received cash from SuperRs 12446 and allowed him discount Rs 254

Cash a/c Dr12446
Discount allowed a/c    254
To Super a/c             12700

11. Paid wages Rs 1800

Wages a/c Dr1800
To Cash a/c        1800

12. Paid cash for trade Expenses Rs 2000

Trade Expenses a/c Dr2000
To Cash a/c        2000

13. Withdraw cash for private Expenses Rs 8000

Drawings a/c Dr8000
To Cash a/c        8000

14. Depreciation on Machinery Rs 50000

Depreciation a/c Dr50000
To  Machinery a/c        50000

Financial Year Start 1 April To 31 March

Thanks for study the Fundamental of Accounting and Tally Prime Notes

10 thoughts on “Fundamental of Accounting and Tally Prime Notes”

  1. ziesha Sheikh

    There is a mistake in the 1st entry in the amount please rectify

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