06-29-2006, 01:07 AM
[quote]<i>Originally posted by sam</i>
<br />for e.g. in case of a liability a company takes a loan from a bank and the money comes in the bank account of the company but this is also creditted and known as liability.
<font color="blue"></font id="blue"> REPLYWhen a company takes a loan, then in the books of Company's Bank A/c will be Debited and Loan A/C will be Credited, as a Liabilities,
in case of Drawing of cash from the company the cash goes out to the owner but it is debitted and is known as drawing.
<font color="blue"></font id="blue"> REPLY in this case Cash/Bank will be Credided and owner A/c will be debited.
in case of introducing money in the business by the owner the money comes in the business bank account but is known as capital which is also COMES IN as described by my brother but it is also creditted.
<font color="blue"></font id="blue"> REPLY in this case money comes in, Bank/Cash will be debited and Owner Capital A/C will be Credited, which is payable to Owner.
If owner is drawing the money, the enteries in the books will be just opposit, as Cash/Bank will be credited & Owner Capital A/C will be debited.
there many examples like these which are enough to perish the old accounting concepts like these.
<font color="blue"></font id="blue"> Please note that Balance Sheet & P&L figures will not be tallied with BS, untill all the transactions are correctly been not posted in to the General Ledger, now a days we have latest Oracle Financial System are implemented, all the transaction are automaticly posted by the System, but accounting concept by Generating the Accounting system is the same, never change.
<br />for e.g. in case of a liability a company takes a loan from a bank and the money comes in the bank account of the company but this is also creditted and known as liability.
<font color="blue"></font id="blue"> REPLYWhen a company takes a loan, then in the books of Company's Bank A/c will be Debited and Loan A/C will be Credited, as a Liabilities,
in case of Drawing of cash from the company the cash goes out to the owner but it is debitted and is known as drawing.
<font color="blue"></font id="blue"> REPLY in this case Cash/Bank will be Credided and owner A/c will be debited.
in case of introducing money in the business by the owner the money comes in the business bank account but is known as capital which is also COMES IN as described by my brother but it is also creditted.
<font color="blue"></font id="blue"> REPLY in this case money comes in, Bank/Cash will be debited and Owner Capital A/C will be Credited, which is payable to Owner.
If owner is drawing the money, the enteries in the books will be just opposit, as Cash/Bank will be credited & Owner Capital A/C will be debited.
there many examples like these which are enough to perish the old accounting concepts like these.
<font color="blue"></font id="blue"> Please note that Balance Sheet & P&L figures will not be tallied with BS, untill all the transactions are correctly been not posted in to the General Ledger, now a days we have latest Oracle Financial System are implemented, all the transaction are automaticly posted by the System, but accounting concept by Generating the Accounting system is the same, never change.
