Which Form 8655 Accounting 2024

Hi, in this video, I'm going to explain what a journal is. A journal is a book of primary entry or original entry, where all transactions are initially recorded. Let's illustrate this with an example. Let's say the problem is purchasing goods for cash. When you purchase goods, cash goes out and the goods come in. So, what is the entry for this transaction? For any transaction, you need to have a thorough knowledge about debit and credit in order to make entries in the journal book. So, for the first transaction, the entry is: debit Purchase Account and credit Cash Account with the amount of 10,000 rupees. In journal entries, you need to record both the debit and credit side of the transaction. Based on the golden rule, you should know that there are three types of accounts: real accounts, nominal accounts, and personal accounts. According to the golden rule, you can make entries on the debit side and credit side of the journal based on the nature of the account. In the case of purchasing goods, cash goes out, so cash is a real account. According to the golden rule for real accounts, debit what comes in and credit what goes out. When you purchase goods, cash goes out, so you credit the cash account. On the other hand, goods come in, so you debit the purchase account. For each journal entry, you also need to write a narration, which is a detailed explanation of the transaction. The narration for the first entry would be: "Being purchase of goods for cash." Let's move on to the second transaction: purchasing stationery for cash. Again, they didn't mention anything in the previous entry, but in this transaction, they clearly mentioned that it is the purchase of stationery. When you purchase stationery, stationery comes...