Corporate Fin Mgt NDLM.PDF

Visual Aid - 2: Basics of Commercial Accounting

Basics of Commercial Accounting

ó Classifications

ó Subsidiary registers

ó Trial Balance

ó Trading Account

ó Profit and Loss Account

ó Balance Sheet

Visual Aid - 3: Classification

Classification

ó Personal Account

ó Asset Account

ó Nominal Account

7.2. While explaining classifications, faculty must ensure that they explain (a)
each account with at least two examples, (b) the meaning of debit and
credit, (c) ledger rulings.

Visual Aid – 4: Subsidiary Records

Subsidiary Records

ó Cash Book

ó Purchases Book

ó Return outwards Book

ó Sales Book

ó Return inwards Book

ó Bills Receivable Book

ó Bills payable Book

ó Journal Proper

7.3. The overall objective of Subsidiary Records is to maintain accuracy in
accounts and prevent fraud. While handling the portion on Subsidiary
Records, Faculty should explain (a) the importance and objectives of each
record, (b) Ledger Postings, (c) how to identify key entries in these
registers and for what purpose.