Create Your Own Simple Accounting System

People who keep track of their income and expenses have been using a Cash Book. This is a single entry system. You begin with a cash balance, record all income and expenses, updating your cash balance with every entry. This is a simple system that will facilitate your knowing where your cash has been coming from and where it has been going. People get immense satisfaction when they find that the cash on hand tallies (at least approximately) with the balance in the cash book.

But the drawback with this system is that you can't readily know how much money was spent for a particular item during a period. You will have to jot down the entries against that item separately and total them. A simple way to overcome this is to have a multi-column cash book. First ascertain what the major heads of expenditure are. Let us say, they are: Provisions, Rent, Car maintenance, Education, Entertainment and Electricity. You can club all other items under a category called 'Others.' Whenever you spend a money, you can enter it under the appropriate head.

There will be a column for the Total and the last column will be Cash.
Business concerns also use this system and this register is called Petty Cash Register.

Accounting Homework Help

Understanding Accounting Transactions

Accounting transactions follow a double entry system. The double entry system is based on the principle that there are two sides to any transaction.If one person gives money, there is another who receives the money. If there is a decrease  in one account, there should be an increase in another. If you pay cash for wages, the cash decreases and the wages expense increases, both by the same amount. Thus every accounting transaction entails two entries. One is called the debit and the other credit. This system offers the advantage of easy verification and detection of errors. Since each debit entry has a corresponding credit entry for the same amount, at any point of time, the sum of the debits should be equal to the sum of the credits. In accounting terminology, this is called balancing. Balancing of accounts is the basic requisite of a reliable accounting system. We can imagine how valuable the system of double entry accounting would have been in the days when we did not even have mechanical adding devices and all additions (not to speak of more complicated operations like multiplication and division) had to be made manually!

Understanding the Basics

Accounting causes a great deal of confusion to many a beginner. But this need not be so. Accounting is not so complicated as to be feared. Accounting is not rocket science. It's based on a simple concept called double-entry bookkeeping. Accounting is believed to have its origins in the Middle ages! Sounds incredible, doesn’t it?
There are five basis terms that cover the entire arena of accounts:
Assets, Liabilities, Equity, Revenue and Expense.
Assets are what you own, e.g., cash, building, equipment, computers, car..
Liabilities are what you owe – a loan from a bank, an amount due to the person who supplied you some goods on credit..
Equity is your net worth – what belongs to you. The capital you invested, the profit that you earned but that is still kept in the business..
Revenue is what you earn – Sales, Service Revenue, Fee earned.
Accounting Homework help is always at hand.

How to get the best help for Accounting Homework

Everyday, hundreds of thousands of students are looking for accounting home work help. some of them get the help they need but some don't. some feel satisfied, some feel frustrated and some feel cheated.
The best way to get reliable home work is to select a tutor who can guide you to do your homework. Do not look for someone to do the work for you. A good tutor will show you how with examples and explanations so that you will be able to do similar works independently.

There are several criteria to look for in a good tutor. But once you find someone and if you are satisfied, stick with him or her.

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