1 tally basic

1. ACCOUNTING IS PROCESS OF RECORDING
TRANSACTION RELATED TO INCREASE
OR DECREASE OF MONEY; ITEM;
EXPENSE (EXPENSE ALWAYS INCREASES)
•A/C WHICH INCREASES/GAINS/
RECEIVES IS Dr (Debited)
•A/C WHICH DECREASES/
LOSSES/ GIVES IS Cr (Credited)

2. TYPES OF A/C:-
• MONEY:- CASH A/C ; PETTY CASH A/C;BANK A/C
• ITEM:-
TRADING ITEM (STOCK/GOODS/MAAL)
WHEN PURCHASING GOODS TRADING ITEM/GOODS /
STOCK=> PURCHASE A/C
WHEN SELLING GOODS TRADING ITEM/GOODS / STOCK=>
SALES A/C
NON TRADING :- WRITE DIRECTLY NAME OF A/C
(E.G:- COMPUTER;MACHINE; STATIONARY)

3. TYPES OF A/C:-
• EXPENSE:- WRITE DIRECTLY NAME OF A/C (LOSS;
DESTORY; ELECTRICITY; RENT; ADVERTISMENT)
• OWNER:- WHEN GIVING MONEY CAPITAL A/C
WHEN TAKING OUT MONEY OR ITEM
(TRADING/NON-TRADING) DRAWING A/C
• PARTY: - WRITE NAME DIRECTY.

4. NAME OF ACCOUNTS RULES EXAMPLES
PERSONAL A/C
DR. THE RECEIVER
CR. THE GIVER
NATURAL PERSON: RAMA/C
ARTIFICIAL PERSON: SHIV & CO.
REAL A/C
DR. WHAT COMES IN
CR. WHAT GOES OUT
TANGIBLE (LAND, BUILDING) &
INTANGIBLE (GOODWILL)
NOMINAL A/C
DR. ALL EXPENSES AND
LOSSES
CR. ALL GAINS AND PROFITS
EXPENSES, PURCHASE, LOSS,
PROFIT, DISCOUNT ETC….

5. TYPES OF ACCOUNTS RULE FOR INCREASE RULE FOR DECREASE
ASSETS DR. CR.
LIABILITIES CR. DR.
CAPITAL CR. DR.
INCOME (REVENUE) CR. DR.
EXPENSES DR. CR.