double entry system and its governing rules

1. Double Entry
System
And It’s
Governing
Rule

2. ACKNOWLEDGEMENT
We are really grateful because we managed to complete our presentation on
the topic “Double entry system and it’s governing rule”
In the given time by our teacher “Mr. Pankaj Gupta”.
This presentation cannot be completed without the efforts and
co-oration of our group members->1.Vanshit Chauhan 2.Harsh goyal
3.Jagroop Singh 4.Shivam Pushkarna 5.Ridhank Yadav
6.Guneet Singh 7.Hritik Goswami 8.Sunny Sherawat.
We also Sincerely thanks to our teacher of accounts Mr. Pankaj Gupta for
guidance and support in finishing this assignment and for teaching Us for this.
Last but not the least, we would like to gratitude to their family members who
allowed us to spent time together for completion of this assignment.
And thankful for support and willingness of my team mates.

3. CONTENT:-
•What is Accounting
•Types Of Accounts
•Rules of Debit And Credit in Different Types of
Accounts
• Acknowledgement

4. •ACCOUNTS AND THEIR CLASSIFICATION
•Types of Approches
•Credits

5. WHAT IS ACCOUNTING ?
Meaning- It is an art of recording,
classifying, summarizing and
communicating financial information
of users for correct decision making.

6. Defination- Accounting is the process of
identifying, measuring and
communication of economic information
to permit information judgment and
decision by users of information.

7. TYPES OF ACCOUNTS
Personal
Account
Natural
Artificial
Representative
Impersonal
Account
Real
Nominal
ACCOUNTS

8. PERSONAL ACCOUNT
Natural account
Records transaction of individual human being
Artificial account
Accounts which includes corporate bodies or
institutions.
Representative account
Accounts which represents a person or group of
persons directly.

9. IMPERSONAL ACCOUNT
Real Account
• Accounts which relate to both tangible and
intangible assets of the firm.
Nominal Account
• Accounts which relate to expensis, losses, income
and gain.

10. RULES OF DEBIT AND CREDIT IN
DIFFERENT TYPES ACCOUNTS
• Personal Account
Debit-> Receiver
Credit->Giver
• Real Impersonal Account
Debit->Come in
Credit->Goes out
• Nominal Impersonal Account
Debit->Expense/loss
Credit->Increase/Gain

11. ACCOUNTS AND THEIR
CLASSIFICATION
 Account is the individual record of an asset ,a liability ,a revenue ,an
expense or capital ,in a summarized manner. (Sales ,Purchases ,cash
,Bank ,Income ,Expense , etc ). It means if need to see the details of
purchase or sale I will see the account of sale and purchase. Account
are classified into two approaches :
•On the basis of traditional approach .
•On the basis of modern approach .

12. TYPES OF APPROCHES
Traditional Approches
• Personal
• Real
• Nominal
Modern Approches
• Assets
• Liabilities
• Capital
• Expense
• Revenue

13. TRADITIONAL APPROACH
 Personal Account
Debit the account of the person who receive something and credit the account of a
person who give something.
Ex- Ram Account, Outstanding, Prepaid, Accrued Income etc.
 Real Account
These are the accounts which relate to both tangible and intangible assets of the
firm.
Ex-Tangible Assets - Plant, Machine, Land etc.
Intangible Assets - Patent, Goodwill etc.
 Nominal Account
These are the accounts which relate to expenses, losses, gain and income.
Ex-Salary Account, Purchase Account, Sale Account etc.

14. MODERN APPROACH
Assets
An assets is any resource owned by business.
Ex- Furniture, Stock, Bank etc.
 Liability
They are defined as companies legal financial debts or obligations that arise
during the course of business operations.
Ex- Creditor, Outstanding, Bank Overdraft etc.
 Capital
It is the amount invested by a businessman in the business. It may be in the
form of cash or kind.

15.  Revenue
It means the income of recurring (regular) nature from any source. It
consist of amount receive from sale of goods ad services provided to
customer.
Ex- Salary Received, Sale of goods etc.
 Expenses
Cost incurred by a business in the process of earning
revenue are known as expenses
EX- Cash Payment, Purchase of Material etc.

16. Special Thanks To:- Mr. Pankaj Gupta
PPT Made By:- Vanshit Chauhan
Harsh Goyal
Editing Done By:- Guneet Singh
Ridhank Yadav
Vanshit Chauhan
Ideas Given By:- Jagroop Singh
Harsh Goyal
Shivam Pushkarna
Guneet Singh
Most Helpful Person:- Sunny Sherawat
Hritik Goswami
THANKS TO ALL
CREDITS