DELHI PUBLIC SCHOOL, Raipur (c.g)

2010-11

Project report:

#Accounts#

Prepared by: Aatman KothariGuided by: Satbir Singh Sir

Roll No. 01I.n.d.e.x

Sr no. Sub-Topics Page No.

1 Acknowledgement 1

2 Certificate 2

3 Topic of project 3

4 Data(book-keeping) 4-6

5 Types of book-keeping 7

6 Single-Entry 8

7 Double-Entry 9-10

8 Debit N Credit 10

9 Accounts n Accounting Types 11-12

10 Abbreviations 13

11 Student’s view about topic 14

12 Conclusion 15-16

13 Teacher’s remark 17

Acknowledgement

There are many people behind the success of this project work, without whom this project could never have been materialized. In the first place I would like to thank God, the almighty for his showers of blessings on me who gave me the strength and power to complete this project. My teacher Mr. Satbir Singh for his support and help. To all those who helped and guided me I would just

like to say a big THANK YOU.Special Thanks to:- Mr.Satbir Singh [Subject

teacher] Raunak Agarwal(friend) Siddharth Mundra(friend)

Mrinal Mehta(Brother)

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•Certificate•

This is to certify that Master Aatman

Kothari studying in Delhi Public School of

standard XITH C has completed his

ACCOUNTS project &

has awarded ____ Grade

Date: September 4th , 2010

(Teacher’s sign) (Vice Principal’s sign)Mr.Satbir Singh Mr.Atanu Rath

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Topic of Project

Book Keeping

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DATA OF PROJECT

¶Book-Keeping¶Bookkeeping is the recording of financial transactions. Transactions include sales,

Single-Entry System

Double-Entry System

purchases, income, and payments by an individual or organization. Bookkeeping is usually performed by a bookkeeper. Bookkeeping should not be confused with accounting. The accounting process is usually performed by an accountant. The accountant creates reports from the recorded financial transactions recorded by the bookkeeper and files forms with

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government agencies. There are some common methods of bookkeeping such as the Single-entry bookkeeping system and the Double-entry bookkeeping

system. But while these systems may be seen as "real" bookkeeping, any process that involves the recording of financial transactions is a bookkeeping process.

A bookkeeper (or book-keeper), also known as an accounting clerk or accounting technician, is a person who records the day-to-day financial transactions of an organization. A bookkeeper is usually responsible for writing the "daybooks." The daybooks

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consist of purchase, sales, receipts, and payments. The bookkeeper is responsible for ensuring all transactions are recorded in the correct daybook,

supplier’s ledger, customer ledger and general ledger. The bookkeeper brings the books to the trial balance stage. An accountant may prepare the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.

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TYPES OF BOOK-KEEPINGSingle-Entry System

Double-Entry SystemTwo common bookkeeping systems used by businesses and other organizations are the single-entry bookkeeping system and the double-entry bookkeeping system. Single-entry bookkeeping uses only income and expense accounts, recorded primarily in a revenue and expense journal.

Single-entry bookkeeping is adequate for many small businesses. Double-entry bookkeeping requiresposting each transaction twice, using debits and credits.

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Single-entry system The primary bookkeeping record in single-entry bookkeeping is the cash book, which is

similar to a checking (chequing) account register but allocates the income and expenses to various income and expense accounts. Separate account records are maintained for petty cash, accounts payable and receivable, and other relevant transactions such as inventory and travel expenses. These days,

single entry bookkeeping can be done with DIY bookkeeping software to speed up manual calculations.

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Double-Entry System The double-entry bookkeeping system was codified in the 15th century and refers to a set of rules for recording financial

information in a financial accounting system in which every transaction or event changes at least two different accounts. In modern accounting this is done using debits and credits within the accounting equation: Equity = Assets - Liabilities. The accounting equation serves as a kind of error-detection system:

if at any point the sum of debits does not equal the corresponding sum of credits, an error has occurred.

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Since several different types of errors result in equal sums for debits and credits, double-entry accounting is not a guarantee that no errors have been made.

►Debits and credits are then defined as follows:

* Debit: A debit is recorded on the left hand side of a T

account * Credit: A credit balance is

recorded on the right hand side of a 'T' account

* Debit accounts = Asset and Expenses (also debit money received into bank

accounts) * Credit accounts = Gains (income) and Liabilities (also

credit money paid out of bank accounts)

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Accounts

An accounting system records, retains and reproduces financial information relating to financial transaction flows and financial position. Financial Transaction Flows encompass primarily inflows on account of incomes and outflows on account of

expenses. Elements of financial position, including property, money received, or money spent, are assigned to one of the primary groups i.e. assets, liabilities, and equity.Within these primary groups each distinctive asset, liability, income and expense is

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represented by its respective "account". An account is simply a record of financial inflows and outflows in relation to the respective asset, liability, income or expense.

Accounting types Account types (nature)

Type Represent Examples

Real Physically tangible things in the real world and certain intangible things not having any physical

Tangibles - Plant and Machinery, Furniture and Fixtures, Computers and Information Processing

existence

Equipment etc. Intangibles - Goodwill, Patents and Copyrights

Personal

Business and Legal Entities

Individuals, Partnership Firms, Corporate entities, Non-Profit Organizations, any local or statutory bodies including governments at country, state or local levels

Nominal

Temporary Income and Expenditure Accounts for recognition of the implications of the financial transactions during each fiscal year till finalizations of accounts at the end

Sales, Purchases, Electricity Charges

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Abbreviations used in Book-Abbreviations used in Book-KeepingKeeping

* A/C - Account * A/R - Accounts Receivable * A/P - Accounts Payable * B/S - Balance Sheet * C/D - Carried down * b/d - Brought down * C/F - Carried forward * B/f - Brought forward * Dr - Debit record * Cr - Credit record * G/L - General Ledger * N/L - Nominal Ledger * P&L - Profit & Loss * TB - Trial Balance * GST - Goods and Services Tax * VAT - Value Added Tax * CST - Central Sale Tax * TDS - Tax Deducted at Source * EBT - Earnings before Taxes * EAT - Earnings after Tax * PAT - Profit after tax * PBT - Profit before tax * DEPR – Depreciation

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Student’s view about the topic

Book keeping is concerned with recording of day-to-day transactions in a set of books as per framed policy. The accounts prepared at any time from the records thus kept, may show the owner, his true financial position. It is very important part of accounting process. The students get the basic awareness regarding the entries. It is mechanical in nature & thus, doesn’t require special skills. As book-keeping is the basis for accounting, it is a key

for learning the systematic knowledge of accounting.

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!!!Conclusion!!!

We already know that bookkeeping is the science and arts of recording in the books of account all those business transactions that result in transfer of money/money’s worth worth. It is a part of accounting and depends largely on correct recording of transactions. Thus book keeping is mainly concerned with:-◊ Identifying the financial transactions and events.◊ Measuring them in terms of money.

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◊Recording the financial transactions & events so identified in the books of accounts.◊Classifying recorded transactions and events, i.e. posting into ledger accounts. Thus, it is concerned with record keeping or maintenance of books of accounting which is often clerical in nature.

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Teacher’s Remark: ___________________________________________________________________________________________________________________________________________________________________________________

Signature: Mr.Satbir Singh

(_________________)

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