Accounting Basics

• The system is based on the principle that every debit entry must have a corresponding credit entry, and vice versa.
• Debits are recorded on the left side of an account, while credits are recorded on the right side.
• Full form of C/D is Carried Down.
• Full form of C/F is Carried Froward.
• Full form of B/D is Brought Down.
• Full form of B/F is Brought Forward.
• Main formula of accounting is, A = L + OE. A for Assets, L for Liabilities & OE for Owner's Equity.
• OE (Owner's Equity) is divided into 4 types. 1. Malik er Biniyog (Investment of Owner), 2. Icome/Revenue, 3. Drawings (Uttolon), 4. Expenses
• Another formula of accounting. A = L + (C + R - Ex - D); L for Liabilities, C for Capital (Main money), R for Revenue, Ex for Expenses and D for Drawings (Uttolon).
• There are 2 types of vouchers. 1. Debit Voucher & 2. Credit Voucher
• Whenever a transaction happens, things stated below will happen. 1. If A + , then L & OE +. 2. If A -, then L & OE -. 3. One item +, then next item -. 4. If OE +, then total L -. 5. If OE -, then total L +.
• If you're the one who's in debt, then you write 'Pownadar'. If you're the one who's giving someone debt, then you write 'Denadar'.
• Double Entry Bookkeeping system was made by Luca Pacioli on 1494.
• If the money value rises, then it goes on Debit. If the money value comes down, then it goes on Credit.
• There are 5 types of calculations on accounting. A, L, OE, I/R & Ex.
• The formula of profit/loss, {(Somaponi Muldhon + Uttolon) - (Praromvik Muldhon + Otirikto Muldhon)}
• The formula of 'Praramvik Muldhon' is = Praramvik Mot Sompod - Praramvik Mot Liabilities
• The formula of 'Somaponi Muldhon' is = Somaponi Mot Sompod - Somaponi Mot Liabilities.
• If Assets value rises, then it goes on Debit. If Assets value lowers down, then it goes on Credit.
• If Liabilities value rises, then it goes on Credit. If Liabilities value lowers down, then it goes on Debit.
• If OE value rises, then it goes on Credit. If OE value lowers down, then it goes on Debit.
• If Income value rises, then it goes on Credit. If Income value lowers down, then it goes on Debit.
• If Expenses value rises, then it goes on Debit. If Expenses value lowers down, then it goes on Credit.
• You categorize Bank Calculations as an asset.
• 'Bohi-Ferot' means you bought an item but returned it.
• 'Anto-Ferot' means you sold one item and someone returned it back.
• 'Pownadar'/'Prodeo Hisab' gets categorized as a liability.
• 'Batta' means discount.
• There are 2 types of discounts. Trade Discount (Karbaari) & Cash Discount (Nogod).
• Trade Discount can be divided into 2 parts. Buyers' Discount & Sellers' Discount.
• Cash Discount can be divided into 2 parts. 'Prodotto Discount' and 'Prapto Discount'.
• IASC full form is International Accounting Standard Committee.
• Transactions are divided into 2 parts. Capital Transaction & Profit Transaction.
• If you sell an item, then the value is 'Prappo'. If you buy an item, then the value is 'Prodeo'.
• If all transactions can gain profits for more than 1 year, then it'll be a Capital Transaction.
• If the profit gain value of an item isn't long-lasting, or that it gets finished early and needs repairing; then it'll be a Profit based Transaction.
• 'Bima' means Insurance. It is a contract between the insured and the insurer.
• Insurance is not only used by individuals but also companies.
• পন্ন, মাল, চেক etc words directly কোন হিসাব এ বসবে না।
• পন্ন transaction এর সময় seller & buyer এর নাম লেখা থাকলে তা বাকিতে হয়েছে বলে ধরতে হবে। তবে, যদি নামের পাশাপাশি নগদ, চেক, ব্যাংক etc লেখা থাকে, তবে বাকি হবে না।