Accounting Concepts

01 Double-entry accounting explained Every transaction has two equal sides. This is how the books always balance. 02 Debit and credit rules (modern approach) Which side increases and which side decreases each type of account. 03 Golden rules of accounting The traditional personal, real and nominal account rules used in India. 04 Chart of Accounts: how accounts are organised How ledgers roll up into groups and then into the Balance Sheet and P&L. 05 Assets, liabilities, capital, income and expenses The five building blocks of every set of accounts, with examples. 06 Capital vs revenue expenditure Which spending goes to the Balance Sheet and which goes to the P&L. 07 Depreciation: methods and entries Spreading the cost of an asset over its useful life, with examples. 08 Advance received and advance paid How to record money received or paid before goods or services are supplied. 09 Bad debts and provision for doubtful debts Writing off amounts customers will never pay, and providing for those they may not. 10 Stock valuation: cost or net realisable value How to value closing stock and why it directly changes profit. 11 Opening and closing balances How balances move from one year to the next, and how to set them up. 12 Suspense account and rectification of errors Parking an unexplained difference and correcting errors with journal entries. 13 Inter-branch accounting Recording transfers between head office and branches, including GST on inter-state transfers. 14 Inter-company transactions Sales, loans and services between group companies: books, GST, TDS and consolidation. 15 Selling or scrapping a fixed asset How to remove an asset from the books and record the profit or loss. 16 Partnership firm accounts: capital, drawings, interest and remuneration The entries every partnership firm needs, with the income tax limits. 17 Starting the books: opening entry, capital and drawings How a proprietor or new business starts its books and records personal money in and out. 18 Petty cash and the imprest system A simple way to control small cash spends in the office. 19 Inventory valuation: FIFO and weighted average How to put a value on closing stock, with a worked example. 20 Cash basis vs accrual basis of accounting Two ways to decide when income and expenses are recorded, and which one you must use. 21 Audit trail (edit log): the rule for companies Why every company's accounting software must keep a record of every change, and what it means for you. 22 Foreign currency transactions and exchange differences How to record export and import bills in foreign currency, and how to book the gain or loss when the rate changes. 23 Bank reconciliation statement (BRS) step by step Why the bank balance and your books differ, and how to match them line by line every month. 24 Accounts payable: managing suppliers and paying on time How to track what you owe, pay suppliers on time, and avoid the tax traps of late payment to MSMEs and the 180-day GST rule. 25 Purchase cycle: from purchase order to payment The steps from requisition to payment, the three-way match, and how purchase returns are handled in accounts and GST. 26 Sales cycle: from quotation to collection The steps from quotation to cash, the documents at each stage, and how sales returns are handled in accounts and GST. 27 Stock shortage, damage, theft and free samples: accounting and GST How to record goods lost, damaged, stolen or given free, and when you must reverse the GST input tax credit.