Modern Approach Accounts| Modern Classification of Accounts with examples | Debit and Credit Rules|

Hi Viewers !! This is the video about the basics of Accounts.
I have covered the basic Rules of passing the Journal Entry in the Journal Book with 'Modern Approach'. Traditional Approach has already been covered earlier.

Traditional Approach to pass Journal Entry
Golden Rules To Pass Journal Entry
   • How to pass Journal Entry| Golden Rul...  


In this video I have focussed on :

1. Assets Accounts
2. Liabilities Accounts
3. Capital Accounts
4. Expenses and Incomes Accounts

To understand how we record the transactions in the Journal Book with examples , watch this video till the end so that you can clear your basics and understand the concept in easy language.

'Journal' Book is also called as the Book of Original Entry/ Prime Entry for the simple reason that whenever we have to record a transaction in the Books of Accounts, it is first entered in Journal Book.

In this Video I have tried to explain the Process of 'Journalizing' (i.e. the process of recording a transaction in the journal book) in an elaborative way.
A briefing about the same is:

Step 1. First of all we need to know what are the various accounts that are involved in a particular transaction.

Step 2. Then we Categorize these identified accounts into Assets, Liabilities, Capital, Incomes, Expense Account.

Step 3. Thirdly, we apply the "Modern Rules of Debit and Credit" on the basis of their nature and make a journal entry out of it.

Step 4. The journal entry is then passed into 'Journal book' in a particular format.

Watch the video till end to have complete knowledge of the topic.
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