FLOW CHART OF ACCOUNTS
INTRODUCTION:
| Type of Accounts | ||
|---|---|---|
| Personal A/c | Real A/c | Nominal A/c |
| | | | | | |
| Name or Bank Name | Goods & Fixed Assets | Expenses & Losses |
| | | | | | |
| Capital A/c,Bank A/c,Ravi A/c,Supplier A/c,Customer A/c Etc.. | Cash A/c , Furniture A/c,Purchase A/c , Cash Sales A/c,Credit Sales A/c,Computer A/c,Machinery Purchase A/c , Etc.... | Rent Paid ,Salary Paid , Wages A/c , Fees Received ,Depreciation A/c , Etc.. |
| | | | | | |
| (Dr). Debit the Receiver (Cr.) Credit The Giver | (Dr). Debit What Comes In (Cr). Credit what Goes Out | (Dr). Debit all Expenses , Losses (Cr). Credit all Incomes & Gains |
| | | | | | |
| Lenin Commenced Business With cash Rs.5000 | Purchased Goods From Boy-Rs.2000 | Salary Paid by Cheque Rs.1000 |
| | | | | | |
| Dr.Cash A/c (Real A/c) - Receiver Cr.Lenin Capital A/c (Personal A/c) - Giver |
Dr.Purchase Goods A/c (Real A/c - Comes into Company) Cr.Boy A/c (Personal A/c - Giver) |
Dr.Salary A/c (Expenses A/c ) Cr.Bank A/c (Personal A/c - Giver) |
| Dr.Cash A/c - 5000 Cr.Lenin Capital A/c 5000 |
Dr.Purchase Goods A/c 2000 Cr.Boy A/c 2000 |
Dr.Salary A/c 1000 Cr.Bank A/c 1000 |
| | | | | | |
| He Deposited into Bank A/c Rs.2000 | Purchased Furniture Rs.1000 by Cash | Received Income for fees Rs.1000 by Cash |
| Dr.Bank A/c - 2000 Cr.Cash A/c - 2000 | Dr.Furniture A/c -1000 Cr.Cash A/c - 1000 | Dr.Cash A/c - 1000 Cr.Fees Received A/c-1000 |
| Bank A/c is Receiver So Debit the Amount Cash A/c is Goes Out from Company So Credit the Amount |
Furniture is Fixed Asset.it is comes into company So Debit Cash A/c -Amount Goes out from company So Credit | Cash A/c - Amount Comes into Business So Debit Fees is Income So Credit |
