Accounting knowledge

What is Purchase ? Purchase is a word that we used for Buy something Products or servicr. In accounting  purchases  is the amount of goods a company bought throughout this year. It also refers to information as to the kind, quality, quantity, and cost of goods bought that  should  be maintained. They  are  added to inventory.  Purchases are  offset by  Purchase Discounts and  Purchase  Returns and Allowances. Example : Mr. Ram  Brought  a Box of  Pen from Maa Tara stationary for ₹ 250.  In Accounting we used this Sentences  like this :   Mr. Ram Purchase  a Box of  Pen from Maa Tara stationary for ₹ 250. Purchase Entry Example in Tally  Accounts :- Ledgers  1. Purchase A/C Under the Purchase Accounts 2. All of the Salers A/C will under the Sundry Creditors      Like_ Ram Purchase from mr. X .  so hear Mr. X is Sundry Creditors. 1. Credit Pu...

Hear I introduction the all of topic easys way as possible. So all of them easyly to understand . What is a Company : company is a legal entity from by a Person or a Organization.  A company may be organized in various ways for tax and financial liability purposes depending on the corporate law of its jurisdiction. The line of business the company is in will generally determine which business structure it chooses.  Example : Partnership , proprietorship , corporation etc.   What is Owner of Company : A owner of company was who created the company with his investment. Example: Mukesh Ambani is owner of Reliance gio. So Mukesh Ambani is Owner and Reliance gio his company What is Capital ? Capital is starting investment of Creation a company. Example: Ritesh saha  started a company Batabyal co. Ltd. With investing ₹ 50,00,000 So hear ₹ 50,00,000  is Capital of Company. So come to the point  Why capital is liability ? i...

Introduction : Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used toaccount for declines in value. Businesses depreciate long-term assets for both tax and accounting purposes. Types : There are two types of deprecation Method in Accounts : Frist method is Fixed installment method And 2nd Demonizing balance method 1. What is Fixed installment method ? When you purchase any kind of  Fixed Assets like Furniture . Then Depreciation Value will be same on every year Example : On 1st April 2016 Furniture purchase Value is ₹200000 and Depreciation Was  10 % p.a . Then on 31. 03. 2016 Deprecation value was ( ₹200000 * 10 / 100) = ₹ 20000 and Furniture value as on 01.04.2017 was ( ₹ 200000 - ₹ 20000) = ₹ 180000 but the next year on 31.03.2017 Deprecatipn value not chang and The value was ₹ 20000 and as on 01.04. 2018 Furniture value will be ( ₹ 1800000 - ₹ 20000) = ₹ 16000...

Frist u have to create some ladger group and ladger in tally This are the list : Group -  salary payable                  Under the current liabilities   Ladger :- 1. Salary A/C      Under the indirected expences 2. All of the Employ Name like      Ram Chodhury A/C      Under the salary payable Then come to the entrys : There are two types of entry you have to made Frist you have to Credit (Cr) the employee and you have to Debit ( Dr) . Credit meaning you decided to pay Example: salary A/C             Dr.              ₹ 10000       To Ram Choudhury.          ₹ 10000 Debit meaning you paid the payment. I guessing that you payment in Cash So the entry was Ram chudhury A/C      Dr        ₹ 10000      To cash A...