Diploma in Accounting – 0ne year course can help to understand Accounting concept

Diploma in Accounting– one year course can help student to understand basic concepts related to accounts, during this accounts training student can learn how to prepare accounts for any organisation it can be service trading or manufacturing, after, there are many institutes of accounts, which offers such diploma in financial accounting it includes e accounting as well. These Job oriented courses can be done after 12th B Com graduation

Some of important topics covered during the course are mentioned below:-

Books of Accounts & Source Documents

Books of Accounts

Day Book
Cash Book
Bank Book
Sale Book
Purchase Book
Ledger

Cash Book

It is necessary and useful for a business to continuously know the bank balance on hand. For this purpose and for facilitating the record of transactions, the book is maintained. The number of Cash transactions in a firm is generally large and, therefore, it becomes convenient to have a separate book, to record such transactions. Its book is a special Journal. This book enables one to know the balance of Cash in hand or at bank at any point of time. Only Cash transactions are recorded in the Cash book. It records only one aspect of transaction, i.e. Cash. All transactions are recorded chronologically in the Cash book. It performs the function of both journal and the ledger at the same time. Transactions are recorded in the Cash book and, based on such a record, ledger accounts are prepared. Therefore, the book is a subsidiary book. But, the book itself serves as the Cash account and the bank account. As a matter of fact, the balances are entered in the Trial Balance directly. The Cash book, therefore, is part of the ledger also. Hence it has also to be treated as the principal book. The Cashbook is, thus, both a subsidiary book and a principal book.

Ledger

Ledger is defined as register that contains, in a summarized and classified form, a permanent record of all transactions. Earlier, we had discussed the term Account. Briefly in an account, transactions of one nature are posted or summaries. All the accounts put together is known as ‘Ledger’. It is the most important book of accounts, since the financial position of a business emerges from it. Hence, the ledger is called the Principal Book. Ledger is the principal book of account that contains all the information regarding business transactions. It is difficult to prepare final accounts in the absence of ledger as it provides necessary information regarding various accounts and the accounts it has to take from its debtors. The real accounts show the values of properties and the value of stock.

Source Documents and Vouchers

Financial accounting records contain factual financial information and, therefore, all business transactions should be evidenced by documentary evidence. For example, a Cash memo showing Cash sale, an invoice showing sale of goods on credit, the receipt made out by the payee against payment, are all examples of source documents. This business document is called the source document and is an evidence in support of a transaction. It is also called supporting document or voucher. A source document is the first record prepared for a business transaction and are the basis for entries is the accounts books. On the basis of this record, first of all, one writes out which accounts are to be debited and which accounts are to be credited. The most common source documents are:-

Cash Memo

It is prepared by seller of goods when the goods are sold against Cash. It has the detail with respect to description of goods sold quantity, rate of Cash item and the total amount received, besides the date of transaction and other terms and conditions, if any. It is an evidence for purchaser of purchases of goods against Cash and for the enterprise, it is an evidence of sale for Cash, one specimen copy

Students after completing such accounting diploma courses are job ready and can be absorbed by any industry, such job oriented courses helps in filling the gap between formal education and employment skills. The Institute of Professional Accountants is one such institute in Delhi India which conducts professional courses in commerce to meet the ever growing demand.