*Accounting Process The Recording Stage

*Two Aspects of a transaction - Debit and CreditThe term debit is supposed to have derived from debit and the term credit fromcreditable. For convenience Dr is used for debit and Cr is used for credit.Recording of transactions - understanding of the rules of debit and credit relating to accounts.

*Types of Accounts

*Types of AccountsTransactions relating to persons Personal Accounts

Transactions relating to properties and assets Real Accounts

Transactions relating to incomes and expenses Nominal Accounts

*Accounts

PersonalImpersonalNatural Legal GroupsReal Nominal-Tangible -Intangible- Revenue, Income and Gain- Expense

*Rules for Accounts

*Rules for Accounts

Personal AccountDebit the receiverCredit the giver

*Rules for Accounts

Real AccountsDebit what comes inCredit what goes out

*Rules for Accounts

Nominal AccountsDebit all expenses and lossesCredit all incomes and gains

Some Transactions

*Books of Original Entry Books of Original EntryThe JournalSales JournalPurchase JournalCash BookSales Return Book Subsidiary Purchase Return BookBooksBills Rec. / Payable Book