Accounts and Finance
Step 1 Basic of Accounts - Debits and Credits


Accounting in Textbooks

Accounting in Companies

We do accounting manually by pen and notebook (Manual Accounting)

We do accounting on  Computers in Some software like Tally

(Computerized Accounting)


We first

1. Pass Entries

2. Make Ledgers

3. Make Trial Balance

4.  Make Profit and Loss

5. Make Balance Sheet  


We only

1.  Make Ledger Name

2.  Pass Entries

Automatically Ledgers, Trial Balance and Balance Sheet updated

We study accounts and tax separately


Journal Entries of Sale, purchase, expense, income do not have taxes like Vat, Service tax, TDS (Both Separate Subjects)

We do accounting for different bills having taxes like Vat, Service tax, TDS etc



There are more chances of errors

There are less chances of errors, however accounting entries should be correct



If we know Journal Entries for various transactions, we can easily do Proper Accounting

For that, we need to learn Debit Credit (Which account to be debited and which credited)


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CA Maninder Singh's photo - Co-founder, Teachoo

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.