2. “Accounting is a tool or a
language use for recording
your business transaction”
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3. Collection of Transaction
Record in Journal
Post to Ledger
Preparation of Trail
Balance
Preparation of Balance
Sheet
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4. Cash invest in business 10000
Purchase 15000
Purchase on account 20000
Sales 55000
Pay to vendor
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5. General Journal
S.No
Particular
Debit
Cash
Rs10,000
Capital
1
Credit
Rs10,000
To record cash invest in business
Purchase
Rs15,000
Cash
2
Rs15,000
To record purchase on cash
Purchase
Rs20,000
Account Payable
3
Rs20,000
To record purchase on account
Cash
Rs55,000
Sales
4
Rs55,000
to record sales on cash
Account Payable
5
Rs20,000
Cash
Rs20,000
To record pay cash
Rs120,000
Rs120,000
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