Kalp Accounting Learning Articles

Journal Entry on Credit Purchase of Trading Goods when Indirect Tax like GST/VAT etc. is charged and you are eligible to claim ITC(Input Tax Credit). Meaning of Credit Purchase:   Credit Purchase means goods purchased/received from the supplier or vendor,but immediate payment is not made against that goods by Cash/Bank. Payment is made after the date of goods purchased/received. Detail Explanation with Example.  Let's take an example for better understanding. In the Books of Mr.Sanjay Gupta the following transaction occurred . Goods purchased from Krishna Enterprises, Odisha as per Invoice No-925 for ₹2,31,438/- including GST 18% on dated 02/04/2020 Steps and Procedures for Decision making for Debiting and Crediting of Ledger Accounts of the above transaction Step - 1 In first step,we have to identify the Ledger Accounts involved in the above transaction. As a result,we found three Ledger Accounts. 1) Purchase A/c 2) GST A/c(IGST/CGST and SGST are used as per applicability of GST

Sometimes,we require Cash withdraw from our Bank Accounts for payment towards outstanding due and expenses. Let's discuss,which Debit and Credit Ledger Accounts are involved in a transaction of Cash withdraw from Bank. For an example, In the Books of Mr.Sanjay Gupta the below mentioned transaction occurred   Cash withdrawn from Indian Bank Current A/c for  ₹73,000/- vide self Chq No- 890109 on dated 06/04/2020 Steps and Procedures for Decision making for Debiting and Crediting of Ledger Accounts of the above transaction Step - 1 At first,our work is to search for the Ledger Accounts involved in the above transaction. As a result two Ledger Accounts are identified. One is Cash A/c,and another is Indian Bank Current A/c Step - 2   In second step, we have to find out the Type of Ledger Accounts involved by using either one of the Accounting Approach. The above two Ledger Accounts mentioned in step-1 are related to type Real Account(Cash A/c) and Real Account(Indian Bank Current A/c) i

Let's select the Ledger Accounts involved in the below mentioned transaction. In the Books of M/s.Sanjay Gupta Purchased Office Stationery from M/s. Lily Stationery as per Cash Memo No-103 for ₹530/- on dated 02/04/2020   Here,Office Stationery is not a manufacturing or trading goods, It is an expense for Office. So,Office Stationery is under the Account Head Indirect Expenses. Steps and Procedures for Decision making for Debiting and Crediting of Ledger Accounts of the above transaction Step -1 In first step,we have to identify the Ledger Accounts involved in the above transaction. As a result,we found two Ledger Accounts One is Printing & Stationery A/c and another is Cash A/c Step - 2 In second step,we have to find out the type of Ledger Accounts involved by using either one of the Accounting Approach. The above two Ledger Accounts mentioned in step-1 are related to type Nominal Account(Printing & Stationery A/c) and Real Account(Cash A/c) in Traditional Approach. Exp

Business organizations purchase Fixed Assets for growth and maintenance of their business. Let's come to a discuss on transactions for purchase of Fixed Assets. In the Books of Mr.Sanjay Gupta the below mentioned transaction occurred. Purchased Furniture & Fixtures from Ankur Industries as per Cash Memo No-5003 for ₹18,100/-   Here Furniture and Fixture is not a trading goods, purchased for the purpose of long term use in office.  So,Furniture & Fixture A/c is under the Account Head Fixed Assets. Steps and Procedures for Decision making for Debiting and Crediting of Ledger Accounts of the above transaction. Step - 1 In first step,we have to identify the Ledger Accounts involved in the above transaction. As a result,we found two Ledger Accounts One is Furniture & Fixture A/c and another is Cash A/c  Step - 2   In second step,we have to find out the type of Ledger Accounts involved by using either one of the Accounting Approach. The above two Ledger Accounts mentioned i

Sometimes,Business units give Security Deposit to Individuals/corporate for using their property like Land,Building,Machinery etc. Now let's take an example for better understanding on Debit and Credit Ledger selection when Security Deposit is paid. Example of a transaction when security deposit is paid. In the Books of Mr.Sanjay Gupta Amount paid to Mr. Rakesh Das towards Security Deposit for Office and Godown Rent for  ₹50,000/- vide Cheque No-890102 of of Indian Bank Current A/c. Steps and Procedures for Decision making for Debiting and Crediting of Ledger Accounts of the above transaction. Step - 1 In first step,we have to identify Ledger Accounts involved in the above transaction. As a result we are able to find two Ledger Accounts. One is Mr. Rakesh Das - Security Deposit for Rent A/c,and another is Indian Bank Current A/c Step - 2 In second step, our task is to find out the Type of Ledger Accounts involved by using either one of the Accounting Approach. The above two Ledger

Each and every Business uses Cash or Bank transaction for their Receipt and Payment activity. Let's discuss,which Debit and Credit Ledger Accounts are involved in a transaction of Cash Deposit into Bank. For an example, Mr.Sanjay Gupta opened a Current Account with Indian Bank and deposited Cash for  ₹5,00,000/- on dated.01/04/2020 Steps and Procedures for Decision making for Debiting and Crediting of Ledger Accounts of the above transaction. Step - 1 At first,our work is to search for the Ledger Accounts involved in the above transaction. As a result two Ledger Accounts are identified. One is Indian Bank Current A/c,and another is Cash A/c Step - 2 In second step, we have to find out the Type of Ledger Accounts involved by using either one of the Accounting Approach. The above two Ledger Accounts mentioned in step-1 are related to type Real Account(Indian Bank Current A/c) and Real Account(Cash A/c) in Traditional Approach. Asset Account(Indian Bank Current A/c) and Asset Account(

Golden Rules of Accounting is a basic Rule which describes, how to find Debit Ledgers and Credit Ledgers in a Business transaction. This Rule is also popularly known as Debit and Credit Rule/Principles of Accounting/Basic Rules of Accounting. Commonly,two Accounting Approaches are used in Financial Accounting for Debiting and Crediting of Ledger Accounts. Traditional/British Approach Accounting Equation/Modern/American Approach   1)    Traditional Approach of Debit and Credit Rules Principles/Golden Rules of Accounting/Debit and Credit Rule in Double Entry System of Book-keeping in Accounting Three   Golden Rules/Basic Rules of Accounting for Debiting and Crediting of Ledger Accounts are Receiver is Debit and Giver is Credit   What comes in is Debit and What goes out is Credit   All Expenses and Losses are Debit and All Incomes and Gains are Credit   2)      Accounting Equation Approach of Debit and Credit Rules Accounting Equation is  Assets - Liabilities = Capital/Equity          

Steps/Techniques/Rules/Methods/Procedures on Decision making for Debiting and Crediting of Ledger Account/Account Heads in Financial Accounting with example. Procedure for Debiting and Crediting of Ledger Accounts/Debit and Credit Rules are same all over the world. These steps/procedures are not different from one country to another country. One can easily take decision for Debiting and Crediting of Ledger Account/Account Heads by following the below mentioned steps.  Step - 1 Find out Ledger Account s involved in the Business transaction. Step - 2 Find out Types of Account of the Ledger Accounts involved. Step - 3 Look at the nature or flow of the Ledger Accounts involved by using Debit and Credit Rule/Principles of Accounting/Golden Rules of Accounting Step - 4 In final step,one has to place the involved Ledger Accounts in their proper column, i.e Debit Column or Credit Column. Let's discuss,example of Some Business Transactions on Decision making for Debiting and Crediting of

Types/Classification of Ledger Accounts in both the Approaches of Financial Accounting. Commonly, there are two Accounting Approaches are used in Financial Accounting for classification of Ledger Accounts. Traditional/British Approach Accounting Equation/Modern/American Approach According to Traditional/British Accounting Approach Ledger Accounts are classified/divided into three types. Personal Account Real Account Nominal Account Personal Account Personal Accounts are also sub-divided into three types. Natural Personal Account Artificial Personal Account Representative Personal Account Natural Personal Accounts are the Accounts of any Individual person such as Ram A/c, Hari A/c, Geeta A/c, Sita A/c, Joseph A/c, James A/c, Anthony A/c, Angel A/c etc. which has no need to declare as a person by any Court of Law. By nature they are considered as person since birth name given by their parent/guardian.   Artificial Personal Accounts are the Accounts of group of persons which is formed

Meaning of Ledger Account and Account Head in Financial Accounting with example.  Ledger Account : A ledger Account is a summarized statement of transactions related to a particular Person, Asset/Liability, or Income/Expense for a particular period showing opening and closing balance. A Ledger Account is posted from the Journal Register or Journal Book,commonly in a date wise ascending order. The transaction date of Ledger Account is same as the transaction date of Journal Register. In practical,Accountants omit Recording of Journal Register and post Ledger Account directly from Primary documents like Credit Voucher,Debit Voucher,Purchase Invoice,Sales Invoice,Bank Payment Acknowledgement,Bank deposit slip or Pay-in-slip etc. to avoid more time consumption. Name and Address of the Business Organization is mentioned on the top of the Ledger Account. Below the Name and Address of Organization, Name and Address of other party Ledger Account is mentioned in case of Personal Accounts like S