1. Accounting Vouchers
Source documents supporting a transaction. Examples: Cash Memo (Cash sales), Invoice/Bill (Credit sales), Receipt (Cash received).
Voucher: A document evidencing a business transaction.
2. Accounting Equation
Based on Dual Aspect Concept: Assets = Liabilities + Capital
3. Rules of Debit and Credit
| Account Type | Debit when... | Credit when... |
|---|---|---|
| Assets / Expenses | Increase (+) | Decrease (-) |
| Capital / Liabilities / Revenue | Decrease (-) | Increase (+) |
4. Journal (Book of Original Entry)
The book where transactions are recorded first in chronological order (date-wise).
Format: Date | Particulars | L.F. | Debit (Rs) | Credit (Rs)
- Compound Entry: Entry involving more than two accounts.
- Narration: Brief explanation of the entry.
5. Ledger (Principal Book)
The book where all accounts (Real, Personal, Nominal) are maintained separately. The process of transferring entries from Journal to Ledger is called Posting.