Hello, Hello, Hello
One to ka four, four to ka one
My name is Lakhan
Mic testing, hello, hello, hello
I hope you all can hear me
Yes sir, all is fine
Audio, video, everything is thumbs up
And we are gonna start with another beautiful lecture
Sir, what are you writing today?
Sir, you have flashed beautiful notes today
Yes, no doubt
It took a lot of hard work to make them
But we will not give you any show-off
We will just tell you that this is your work
You have to focus on it
You have to listen to it very carefully
And these are ledger notes
You used to read a lot in the last class
Yes sir, I remember, I was sweating
You remember, right?
So it is the same thing
When you understood it
When you were sweating
But, but, but
When you understood it
Then you said
Oh man, I was getting scared for no reason
This is such an easy thing
Like the game of left hand, left finger, left nail
So friends, read it as notes
Just think
Just imagine
Which movie is it?
Krrish, in Krrish, Hrithik Roshan's friend
Repeatedly hits the same dialogue
Just imagine
So I hit the same dialogue in front of you
Just imagine my friends
If I was teaching you these notes directly
And not in the last class
Would you run away from the class or not?
Tell me
Brothers and sisters
I am asking you
If I was teaching you directly
Would you run away from the class or not?
Yes sir, we would run away
But now you have seen the discussion
You have written the rules in your own language
So now there is no problem
Now you will enjoy reading
You will feel fantastic
Sir That's it
Now show me
Read it
Leisure account
Meaning Without any delay
Read the meaning
What is this?
Accessibility setup assistant
Someone called you
You come to bother
People are talking here
Welcome picture
Threaten the director
After recording the business transactions
In the journal
Or special purpose subsidiary books
The next step is to transfer the entries
To the respective accounts in the
Leisure L-E-D-E-G-R The book of Leisure says
The first step of the account
After entering the journal
The next number comes of Leisure
We know what is the big deal
Journal, Leisure, Travel and Stating
But sir
I have written one thing
After recording the transactions in the journal
Or special purpose subsidiary books
What is the name of this?
Its chapter is different
When you will read there
You will understand why it was written here
Don't worry
For now, just understand this much
And read and go
The next stage after the journal
Looking at the journal entry
Leisure posting
What is Leisure?
Whatever the journal entry
We have done
Every account
Its summary is made at one place
Individually all accounts
A single account is called an account
And the whole book is called Leisure
Leisure is a book
Where all the transactions related to a
Particular account
To a
Particular account are collected
At one place
Did you see?
All the transactions related to a
Cash account came at one place
Which we named as cash
All the transactions related to purchase
Came at one place which we named as purchase account
Then related to sales
Related to Harsh limited
Related to all such items
All the transactions
To be written at one place is called Leisure
Leisure has been defined
How easy it seems
Just think, I would have told you directly
That something like this happens
All the transactions are written at one place
And that is called Leisure
You would have said, this is a mistake
What is he telling?
But there is nothing like this
We have written another definition
We have described Leisure 2-3 times
For dear children
This is a book language
The above was in our words
Let's see if the definition is a book language
Let us check
What does the book language say?
The Leisure is the main or principal
Book of accounts
In which all the business transactions
Would ultimately find their place
Under various accounts in a duly classified form
There is nothing like this
Don't get confused
The above line is written in style
All the transactions related to one item
To be written at one place
And to make all such accounts is called Leisure
That is it, Utility of Leisure
To know the collective effect
Of all the transactions pertaining to one particular account
By this classification
Utility of Leisure means
What do we get from Leisure
After converting the journal entries
In the form of Leisure
It provides complete information
About all accounts
We get the complete details of each account
From A to Z
For example, we got the complete account of the cash account
Where did it come from?
Where did it go?
How much is left?
With whom did we purchase?
How much did we borrow?
We get to know everything related to each item
Then it provides
Position of assets and liabilities
There is a final stage
Of accounts
To make a balance sheet
In the balance sheet, we write liabilities
Balance sheet is like this
In the shape of a titanic
Balance sheet is like this
Like every account, balance sheet is also like this
There is one side in the balance sheet
One side is the liability side
And the other side is the asset side
Liability side is all the loans of the business
Asset side is all the wealth of the business
So, from Leisure
We also get help in making a balance sheet
Sir, how is that?
For example, Harsh Limited
Was one of our employees
What do we have to take from him or what do we have to pay
At the end of all transactions
So, the closing balance of the Harsh Limited account
We will get to know that
This is our asset, we have to take money from it
This is our liability, we have to pay money from it
Accordingly, we will write it
On the side of asset or liability
In the balance sheet
It facilitates to prepare trial balance
It becomes easier to make trial balance from leisure
Or should I say
The next stage comes from leisure
In accounting
That is called trial balance
How does that happen, sir?
That is a different topic, we will read in a different
chapter
Just learn this much
After leisure is over
In making trial balance
We can make trial balance
If you are reading the benefits of leisure, then just read
this much
Important Leisure is also called
The principal book of accounts
Sir, what does principal mean?
Don't you know the meaning of principal?
Did you go to school or not?
Sir, it is the same principle here
This principle means
Head of all books of accounts
Leisure is such a book
Which is the head in all books
We make leisure from journal
From leisure, trial balance is made
From that, trading, balance sheet is made
So let's say
Leisure has a lot of respect in the market
The accounting is done on the basis of leisure
That's why it is called one of the head books
One of the principal books
There is a journal and leisure
Each leisure account
Is divided into two equal parts
Is it the same, friends?
Did you see the accounts?
We make two parts of one leisure
Yes, sir
We break it from the middle
And make two equal parts
Left hand side and right hand side
LHS and RHS
Left hand side
And right hand side
On the left hand side, we write
D, R, Doctor
And on the right hand side
We write
C, R, Compounder
Hmm Have you sat in any MBBS class?
Hmm? Where did this come from in your mind?
D, R for debit, C, R for credit
Doctor and Compounder
Meet me after the class
Doctor and Compounder
After that, the format is given
Format, name of the account
Date, particular amount
Was there anything like this?
Yes, sir
Okay, sir
Leave it
I will tell you if it is useful
If it is not useful, why should I increase your burden?
Next is
Posting in the leisure
This will be dealt separately from journal entries and each
subsidiary book
Case 1
Posting from journal entries
If an account is debited in the journal entry
The posting in the leisure should be made on
Debit side of that particular account
Like there was an entry
Debit to capital account
In that entry, the cash account was being debited
So now the rules of posting are written
How to post
Posting means making accounts by looking at the journal
entry
Making leisure by looking at the journal entry
Is called posting
That is called posting
We make accounts by looking at the journal entry
We call it posting
Then there is no problem
So the rules are written
How to make accounts from the journal entry
Like we had to make a cash account
We look at all the entries one by one
And we see in which entry the cash is debited
And in which entry the cash is credited
And suppose the first entry was
Cash account is being debited
So what we do
The amount from which the cash account is being debited
That much amount
We go and
We go and We go and the debit side of that particular
account is 2 lakhs. The same line is written here. If an
account is debited in the journal entry, the posting in the
ledger should be made on the debit side of that particular
account.
If 2 lakhs are debited in the cash account, then in the
ledger of the cash account, the debit side will be written
as 2 lakhs.
In the particulars column, the name of the other account
should be written for reference.
And what will be the name of the other account?
It should be the one with the name of the other account and
should be written under the cash account and should be
credited in the journal entry.
It is very easy to understand and it is a lot of fun.
I am also enjoying teaching and you should also enjoy
because it is getting really beautiful.
In the beginning, if someone has taken a risk and if
someone has taken a risk to read it and understand it and
if he has not understood it, then he must have understood
how easy it is to read after understanding it.
But only when the last class has been done well.
If someone is watching this class directly after skipping
the last one, then come here and I will wave my hand
lovingly on your head.
May God bless you.
Go, eat cashews and almonds
Next line
For the account credited in the journal entry
If the cash account is credited in a journal entry then
posting in the ledger should be made on the credit side of
that particular account.
Then where will we write that amount in the cash account?
We will write on the credit side.
And what will be the name given?
It was written on the debit of the cash in the journal
entry.
In the particulars column, the name of the other account
that has been debited in the journal entry is written for
reference.
Important Important Important Important Two is written
before the account which appears on the debit side of the
ledger.
In the debit side, we use two words.
Buy is written before the accounts appearing on the credit
side of the ledger.
And what will be written on the credit side?
Buy Use of these two words
Two and buy is is optional
My goodness
It is not mandatory.
There are some books one out of a hundred which apply the
option of two and buy and say that it is optional so I am
not using it.
Two and buy does not apply
One out of a hundred
The remaining 99%
The remaining 99% left side two and buy are still being
used as a tradition.
It is still going on.
Keep two and buy in your mind.
It will also be useful in telly.
I have written it for your information.
I have told you that it is optional.
But everyone is following this option.
There is a trend in the market.
That's why you should also follow this.
You should also follow this.
No doubt
We are going to follow it.
Very good
Next Ledger posting from cash book important points
We will understand when we see the cash book.
We have not seen the cash book yet.
Nothing is that
These are the notes of the subsidiary book.
When we complete the subsidiary book
We will come back to the ledger again.
We will read the notes again.
These are the notes of the subsidiary book.
We can't read these notes yet.
Let's go
Closing and balancing of the account
Normally after every month
Or whenever a businessman
Is interested in knowing the position
Of various accounts
The accounts are balanced are balanced.
I have written it down.
The difference between the two sides is inserted on the
side which is shorter.
To whom you are going to pay your resources is your
creditor.
Number 2.
Real account will usually show debit balance.
What is a real account?
It is an account of an asset or a liability.
Machinery, furniture, bank loan.
All these will become real accounts for you.
Personal accounts are those which are made in someone's
name.
Nominal accounts are those of income or expense.
Like commission was an income.
Account of commission is your nominal type account.
and the account of rent and salary is an expense account so
it is called nominal account see friends, all the types of
accounts we have made in ledger, all the accounts we have
made we classify them in three types one personal, one real
and one nominal in personal, whichever you go there see the
14-15 ledgers we have made whichever is made in a person's
name we call all of them personal account which is an asset
or liability account like a cash account which is an asset
account we call them
account and which is an expense account like rent, salary,
expenses like commission income we call all of them nominal
account ok sir ok debit balance of any account means an
asset or an expense whereas credit balance means a
liability, capital or revenue asset or expense has a debit
balance liability, capital or revenue generally has a
credit balance some general rules are written nothing else
you can see the chart in front for your reference and
friends here the ledger notes get finished
we had to learn only this in ledger notes now the notes
which are left to be read are only those friends, those of
subsidiary book those of cash book what is their effect on
ledger so we will finish the topics of subsidiary book and
cash book after that we will come and read ok, don't worry
sir, you will teach after that we will come and these notes
can't be left incomplete we will teach when those topics
will be done you will understand them then I will say what
was their relation with ledger
we see that then you will say yes, yes ok then we will see
ok sir, done so sir, what are you going to do now now
everything is done now everything is done now the
discussion has started now the practice has started now see
where to go see ahead what happens sir, are you going to do
trial balance so easily so easily you will reach to next
topic then I am saying this course is of 5-6 days then what
is there in this course there are many things friends, to
read there is a lot of discussion should
show you what we are going to do next show sir now we are
going to squeeze that ledger what we have made we have
eaten a lot
I will show you their squeezing now you will learn to
analyze them we have made after making now we will learn
their double effect there is a thing called double effect
there is a thing called double entry system our accounts
are based on double entry double effect double entry system
our entire accounts what is that name you will see now what
I am going to say
I will prove my point there
I will try to open those notes in front of you
Holi ke din dil khil jaate hain rangon mein rang mil jaate
hain so friends, we will play Holi what is the meaning of
Holi we will show you double effect and for double effect
we will use highlighter what is the meaning of double
effect har koi journal entry
I am telling you the meaning of double effect bring your
ears here listen carefully take this har koi journal entry
kam se kam do khato par effect daalti hai aapne dekha bhi
hai journal entry mein ek khate par debit ka asar padta hai
aur doosre khate par credit ka asar padta hai isi ko hum
double effect ya double entry system bhi kehte hai har
journal entry do accounts par asar daalegi ise hum kehte
hai double effect ya double entry system jaise ki pehli
entry aapke computer screen par aapko
de rahi hogi cash account debit to capital account isi
entry mein do khato par asar padra hai wo do khate accounts
hai sir ek cash aur ek capital cash par debit effect pad
raha hai capital par credit effect pad raha hai cash ka
account debit ho jayega ja karke aur capital account credit
ho jayega isi ko double effect kehte hai jara dekhoge mere
saath saath would you people see yes sir why won't we cash
account debit aur capital account credit iska effect dekho
aaj biraj mein holi re rasiya hmm
hmm hmm hmm yeh dekho cash account mein debit side a raha
hai 2 lakh rupey aur capital account dhundho capital
account mein tumhe credit side dikhega 2 lakh rupey capital
account mein tumhe credit side dikhega 2 lakh rupey aur
capital account tu hai kaha tu chhupa hai kaha hum tadapte
yaha capital account capital account yeh raha ismein credit
side likha hua hai 2 lakh rupey sir yeh technique kis kaam
aati hai maan lo koi galti ho jaye hum se hum se ledger
banate waqt banate waqt koi galti ho
hum aise hi check karenge cash to capital cash account mein
debit side dikheni chahiye 2 capital ke naam se aur capital
account mein credit side dikheni chahiye by cash ke naam se
aisa dikh rahi hai ya nahi toh aapko galti pata chal jayegi
halaki hum se nahi hui abhi but kahin ho jaye toh yeh
technique kaam aayegi toh dekhte hue chalo pehle technique
ko pure tariqe se hmm hmm hmm hmm uske baad next is
furniture account debit to cash account main galti karke
dikhaunga bhi aapko jab yeh saare
effects dikha dunga na phir main tumhe bete galti karke
dikhaunga phir dikhaunga ki kaise iss technique se galti ko
trace kiya jaa sakta hai theek hai sir? ok sir toh sir yeh
toh furniture account mein debit side hona chahiye 20,000
aur cash account mein credit side hona chahiye 20,000 maine
ka thik keh rahe ho jhank le hai ek baar aisa hi furniture
account aur cash account cash mein toh credit side yeh raha
sir 20,000 rupee by furniture ke naam se aur sir furniture
account mein aur dikh jaye
side to cash ke naam se 20,000 toh baad ban jaye haan haan
haan baad ban jaye ban gayi baad furniture account mein
debit side dikh gaya to cash ke naam se 20,000 next entry
hazir ho purchase account debit to cash account matlab
purchase account mein debit side dikhna chahiye 50,000 to
cash ke naam se aur cash account mein credit side dikhna
chahiye 50,000 by purchase ke naam se purchase account aur
cash account kaha ho tum? jaldi se aao samay cash account
yeh raha ismein credit side likha hua
by purchase 50,000 aur purchase account yeh raha yeh raha
yeh raha ismein debit side likha hua hai to cash 50,000
very very good sab kuch sahi chal raha hai ah ha ha ha ha
class bhi samajh mein aa rahi hai concept bhi khaate bhi
match ho rahe hai
AC ki hawa bhi lag rahi hai aap jaise pyaare bachche saamne
baithe hain zindagi mein ab koi khas darkaar rahi nahi
dostu next kya hai iske baat next is what sir purchase
account debit 41 aur rehaan traders credit 25,000 aur
kavita traders credit 16,000 yaad hai? yaad hai bhi jom
mene aise karke bola tha? kya bola tha mene? hard general
entry kam se kam do khato par effect daalti hai do hi khato
par effect daalti hai do se zyada accounts par bhi wo
effect daal sakti hai to sir jaise yaha pe hum
rahe hain to yeh to teen khato par asar daal rahi hai haan
baat aapki maan li purchase account ko debit kar diya
rehaan trader ko credit aur kavita trader ko credit teen
accounts par asar daal rahi hai purchase account pe debit
effect aur rehaan aur kavita purchase account pe credit
effect sir phir aap yeh double entry system kyon bol rahe
hain sir? sir yeh dekho yeh to triple entry system ban gaya
kuch logon ka bhen ka doubt rahata hai yeh to triple entry
system ban gaya sir ab to teen khato
asar hai to dosto agli condition kya aati hai agli
condition yeh hai debit aur credit ka total barabar hi
rehta hai jitna effect debit ke khato par hai utna hi
effect mila karke sare credit ke khato par bhi hai matlab
ek khate pe debit effect 41,000 aur do khato pe mila ke
credit effect 41,000 to effect do hi hai ek effect debit
41,000 ek effect credit 41,000 credit ke andar do sub parts
bane hua hai to isse triple entry system nahi ban jayega
yeh double entry system hi kehla hai debit ke
41,000 credit ka effect bhi 41,000 credit ke andar sub
parts bane hua hai to triple entry system nahi ban jayega
double entry system hi kehla hai Oh, sir, the class didn't
repeat anywhere, it felt exactly the same.
No, no, no, I said it twice.
Your class didn't repeat after going back, I said it twice.
Okay, sir.
Let's see then.
So, the debit side should be visible in the purchase
account.
Rs. 41,000.
And the credit side should be visible in Rehan and Kavita.
Rs. 25,000 and Rs. 16,000.
Where is the purchase account?
Come out.
Where is the purchase account?
Come out.
Hey, come out.
Here it is.
The debit side in the purchase account is Rs. 25,000 and
Rs. 16,000.
Rs. 41,000.
Rs. 25,000 and Rs. 16,000.
Rs. 41,000.
Okay, sir.
And Rehan and Kavita.
I think you should also come out.
Rehan, where are you?
Rehan, Rehan, Rehan, my friend.
Here is the credit side in Rehan.
Rs. 25,000.
Beautiful.
Here is the credit side in Kavita.
Rs. 16,000.
It's fun.
Very good.
Rehan Traders Account Debit to Purchase Return.
Means.
The debit side should be seen in Rehan Trader account.
Rs. 5,000.
And the credit side should be seen in the purchase return
account.
So, Rehan Trader and Purchase Return Account.
Your number has come.
Come out.
Rehan Trader was just called.
So, in Rehan Trader this is the debit side.
Rs. 5,000 in the name of Purchase Return.
And in the Purchase Return Account,
This is the credit side.
In the name of Rehan Traders.
Same amount.
5,000 rupees
Ohoho, these are double effects
These are everything
This is called as expert reading
This is called analyzing the ledgers, reading the ledgers,
checking the ledgers as an expert
Okay sir
Okay, I hope I haven't made any mistake
We'll find out from here.
Next is what?
Rehan trader's account debit 20,000
There are two sub-parts of credit 19 and 8.
In cash account, credit side will be 19 and in discount
received account credit side will be 1000 1000.
Let's check
In Rehan trader's account, debit side 20,000 or not.
Here it is sir
In Rehan trader's account, debit side 19 and 8, 20,000
Let's write it in parts too.
And in cash and discount received account let's check
In cash account here is the credit side
In Rehan trader's account, credit side 19,000.
Got it, got it, got it
Yes sir, yes sir, yes sir
After that, in discount received account, credit side will
be 1000
Let's check that too
In discount received account, credit side will be 1000
Here it is.
In discount received account credit side will be in Rehan
trader's account, 1000
Now do it fast
Next is what?
In cash account, debit side 40,000.
In sale account, credit side 40,000 In cash account, debit
side 40,000.
In sale account, credit side 40,000
In sale account, credit side in the name of buy cash 40,000
Yes sir
Thereafter, thereafter
In Harsh limited account, debit side 27,000 In sale, credit
side
In sale, credit side 27,000 In Harsh limited account, debit
side
In Harsh limited account, debit side 27,000 27,000 Sir, did
you teach anyone else?
With these notes?
How is this circle?
You must have got it at the time
At that time
Yes sir, yes sir
Ok Next entry
Drawings account, debit to cash
In cash account, credit side will be 10,000.
Here it is 10,000 in the name of buy drawings
In drawing account, debit side will be
Here it is, to cash account 10,000 Next is what?
What? Drawings to purchase
In purchase account, credit side will be 4,000.
In drawings account, debit side will be 4,000.
In purchase account, here it is
Credit side, 4,000
In the name of buy drawings
In drawings account, here is debit side 4,000 to purchase
To purchase
Instead of highlighter, I am writing pen
I am not playing Holi.
Ok, I am not doing it
If I write highlighter again and again, it will take more
time
Time is saved from pen
I don't want to do it anymore
Next is
Kavita trader's account, debit 8,000
In cash and discount receipt, credit 7,800 and 200
In cash account, here it is
Credit side, buy Kavita trader's 7,800 After that, Kavita
trader's
And discount receipt, we have to see its effect
Kavita trader's and discount receipt
Kavita trader's, here it is
Credit side, 8,000
And in discount receipt, here it is
Credit side, 200
In the name of buy Kavita trader's, credit side 200
Cash account, debit 8,850.
Discount allowed
Account debit, 150 to
Harsh limited account, 9,000
In cash account, debit side should be seen 8850.
In discount allowed account
Debit side should be seen, 150
And in Harsh limited account
Credit side should be seen, 9,000
Is it visible or not?
Let's find out
In cash account, debit side 8,850.
Here it is
To Harsh limited, 8,850
It is visible, sir.
It is visible, sir
It will be visible, sir.
In fun, he says
I will see you, I will see you, I will keep seeing you
Sir, either you teach
Or talk about fun.
Choose one
I will do both
I will do both.
Okay, sir
After that, after that, after that
Discount allowed account
Here it is.
Debit side 150 rupees
And where was the next effect
Of this?
In Harsh limited account, here it is 9,000 rupees.
And 150.
In Harsh limited, 9,000 rupees
Credit in Harsh limited 9,000 rupees.
Yes, sir.
After that
Cash debit 12,000, sale credit 12,000.
Cash debit 12,000
Sale credit 12,000.
So cash debit 12,000
Here it is.
In the name of two sales 12,000 rupees in cash account
And I will show you in sales also.
Credit 12,000.
In sales, credit
I will show you 12,000.
One minute
In sales, credit 12,000
Got it, sir.
Got it.
It doesn't take long
By cash account
In the name of 12,000 rupees
Okay, sir.
Got your point
Next please, sir
Now you will ask for next.
You have become an expert
In purchase account, debit side 24.
In Praveen Brothers, credit side 24.
Okay, sir.
In purchase
Account, debit side 24
Got it. Here it is.
To Praveen Brothers
Got it.
Here it is.
To Praveen Brothers
And in Praveen Brothers, credit side
Here it is.
By purchase, 24,000
Okay, sir.
Okay. Done
Thereafter, thereafter, thereafter
Thereafter In rent and salary, debit side 24
And in cash, credit 6,000
In cash, credit 6,000
Here it is.
24 combined 6,000 24 becomes 6,000
And in rent and salary, debit side
And if we get 2,000 and 4,000
Then it becomes
It becomes.
In rent, debit side got 2,000 in the name of cash
And in salary, debit side got 4,000 Sir, just check in rent
and salary
In this, credit side is also getting
What we wanted, 2,000 and 4,000
That closing balance is getting.
This is not the effect of entry
The effect of entry is
Debit side.
In rent, 2,000
And in salary account, 4,000
You are telling that the credit side is written
That is not the effect of entry.
That is the closing balance
Closing balance. Okay. Okay, sir.
Okay. Okay.
So it is like this
People who get confused can get confused anywhere
They don't look for confusion
They look for confusion
That's why I cleared this point for you
Okay, sir.
All effects are same. All effects are same.
In every entry, the total of debit
The total of credit is same. Yes.
In every entry, at least 2 or more
It affects the accounts.
In every entry, the total of debit and credit
Is same.
That's why it is called double entry system
Is called double entry system
It affects one debit
With the same amount of entry
And it also affects the credit
There are two effects.
One debit and one credit
Either with one account or with more than one account
That's why it is called
Double entry system
Sir, done.
Your talk is done.
Now friends
Tell me one thing
Let's put the whole total
Let's see. Okay.
Yes, sir.
Let's have a total
Of every account
Every account. Okay.
Look at this.
How will we do it, sir?
What do you want to say? Basically
Basically, I want to say
Like All the by balance
In all the accounts
Total of all of them.
How much is it?
And in all the accounts 2 balance cd is written.
Total of all of them
How much is it?
If both the totals are equal
This is an indication that you have done all the accounting
Corrected And if both the totals are not equal
This is an indication that
You have also checked both the effects
Despite that, you have also made a mistake in checking
It may be
Effect There may still be a mistake somewhere What is the
possibility? Yes, if they are not equal
Means sir
When we see the journal entry and make all the accounts
Then after that we can check it in two ways
First of all, we will see all the effects
Whether it is equal or not, whether the double effect of
every entry is going or not After that sir, we will total
the buy balance CD of all the accounts
Wherever there will be a buy balance CD on the credit side
And sir, for the rest of the accounts, we will total the
two balance CD
Wherever there is a balance CD, we will total it
Then we will be satisfied that everything has been fixed
Otherwise, there is something wrong
Yes sir, keep this in mind Keep it in your heart and mind
I will get the calculator, where is the calculator?
I will get the calculator, you will also need the calculator
Take the calculator and sit for a while
Ok sir, I will be back in a while
I will be back in a while
I have got the calculator
Come on, let's have a total
With a lot of love
In the cash account, there is a buy balance CD
So let's total all the buy balance CD 148050 Yes sir, after
that
In the purchase account, there is also a buy balance CD
Plus 1110000
In the sales, there is no buy balance CD, not in the capital
In the furniture, there is 20000, plus 20000
In the Harch Limited, there is a buy balance CD of 18000
Plus 18000
In Rehan, there is no buy balance CD, not in Kavitam
In the drawings, there is 14000
In the discount allowed, there is 150
Plus 150
In the rent, there is a buy balance CD of 2000
In the salary, there is a buy balance CD of 4000
So how much is the total of all the buy balance CD? 317200
What is it? 317200 In the style, it is 20000
Now all the debit sides are written
Let's do the total of the buy balance CD
Let's go, let's go, let's go
Let's go, let's go, my friend
In these high and low roads
In your sweet talks
We shouldn't get lost anywhere
In the sales, there is a buy balance CD of 79
It has started
In the capital, there is a buy balance CD of 279
After that, after that, after that
Where have you hidden the buy balance CD?
In Kavita Traders, there is a buy balance CD of 8000
Plus 8000
In the discount received, there is a buy balance CD of 1200
Plus 1200
In the purchase return, there is a buy balance CD of 5000
Plus 5000
Leave the drawings, leave the discount
In Praveen Brothers, there is a buy balance CD of 24000
Plus 24000
After that, there is no buy balance CD anywhere
So this total is also congratulations
This is also coming 3,17,200 rupees
All the work is fine
Because you have done a lot of hard work
And you have moved forward with a lot of honesty
It is coming exactly
Shake hands
Good, very very good
What was this?
This was the total of my buy balance CD
I will write it clearly on the other page
Wherever it is written, buy balance CD
All of them have a total of 3,17,200
And wherever it is written
True balance CD
All of them have a total of 3,17,200
Now friends, I will ask you a question
Wow, what do you have to say?
Govinda says in the movie
I will ask you a question
Tell me
I will not ask you that elephant ant Buy balance CD
3,17,200 rupees
Friends, is this a debit balance
Or is it a total of credit balances Is it a total of debit
balances or is it a total of credit balances
Sir, what is to be told in this?
Sir, we have totaled the credit side
So this is the balance of the credit
And sir, 2 balance CD 3,17,200, how did this come?
Sir, we have totaled the debit side
So this is the debit balance
Now all the people who agree with this
And are shaking their necks
And say yes sir, you are right
Come here, bring your ear here
I will put it under your ear Idiots, that's all you have
learned
That's all you have learned
Friends, this buy balance CD
The credit side is written
If there was a debit balance, we would have written the
credit side
So that the presentation looks good
Have you forgotten this?
What you see in the cash account
This credit side, 148050
This is not a credit balance
The total of debit was coming, it increased 268050 and the
total of credit was small 12800, so the remaining 148050
The balance of debit was left
The balance of debit was left, 148050
We had written the credit side
Friends, if the balance is equal on both sides
It does not mean that it is a credit
Hmm, okay sir
So all the buy balance CDs are written
This is the total of debit balances
Okay sir
And all the two balance CDs are written
This is the total of credit balances
All this is a total of credit balances Sir, it is 317200
What is the difference?
This is the difference, my dear friends If there is a
mistake in the debit or credit
Then you have to see whether you have to improve the debit
balance or the credit balance Hmm, I understood you
It's a good thing if you understand If you don't
understand, you will understand
Don't do this
Okay Accounting is not a complex task
Accounting is not a complex task at all
But it is a very very very
Important and carefully to be done task
It is very important and very carefully to be done
It is not complex
Complex is for those people who do not understand the
importance
It is not complex even at a distance I We keep teaching
children like you
Those who do not even know the A of accounting
They learn to run telecom software in a month
That too in a good way
Why? Let's understand things once
You earn money from accounting all your life
Accounting is a very white-collar job
It is a sitting job, it is a respectable job
You sit and work, you get respect, everything is there
Okay So in this way, we can play checking
Now this total is equal
Now we can be satisfied that this total is also equal
And we have fixed all this work
We can say 100%
That whatever we have done is 100% right
Those who are studying CA and watching us
Or those who are studying CS or CMA and watching us
I would like to give them a lesson today
And today I would like to tell them one thing
Whenever tomorrow
As a chartered accountant or as a company secretary
Or as a cost and management accountant
You sign a report
Whether it is an audit report, a certificate Or a network
certificate for bank finances
Any kind of such thing
So friends, never ever provide 100% absolute assurance
Provide Reasonable Assurance
What is the difference between Absolute Assurance and
Reasonable Assurance?
Absolute Assurance
Means If you have signed that paper
And you have said
I am giving 100% Absolute Assurance
So it means
You are saying that everything is fine
I have checked each and every thing
I have checked each and every rupee
Everything is fine, if there is any problem, you can catch
me
I am responsible
I have checked every detail
This is 100% Assurance
Absolute Assurance
Means 100% Assurance
But If you start giving such assurances
You will get trapped
If you start giving such assurances
You will get trapped
Never Why? How can you take guarantee of another person?
He has not given you complete data
You are saying that we have done full investigation
You have signed 100% Assurance
That data must have been given by the client
He must have not given you complete data
He must have done some concealment there
He must have done some falsification there
He must have altered the figures
What assurances do you always give?
Reasonable Let me tell you the meaning of Reasonable
Assurance
We have checked everything from our side
Whatever they had provided us
According to that
We assure that everything written in it is fine
And we sign
Even after that
We cannot give 100% assurance
If something is hidden
Or something is left by chance
Keep this much space for yourself
While signing any document
In the future
There is a topic of audit
Which is also included in our course
The faculty of audit will also tell you about this in more
detail
The faculty of audit will also tell you about this in more
detail
You will get to learn about this in more detail
Yes sir, we understand
Now friends, the same situation is here
The total of ledger balances
It never ever provides
It never ever provides absolute assurance
Whatever has been done
It must have been done right
How is it possible, sir?
We have also checked the entry
The APH is equal on both the accounts
We have also checked
The APH is equal on both the accounts
We have also checked
The ADA signature as well
We have also check the total of all the balances
My dear friends
This is not your absolute assurance
Yes sir, 100% your documents will be fine
Still it is a reasonable assurance 99.99% 99.99% Whatever
accounting has been done so far, it is all right, even
after doing so much checking, 99.99% surety that the work
that has been done so far is absolutely fine, there is no
shortage in it.
100% surety is not found even after doing this checking, it
is not found even after doing this check.
Sir, how can this happen?
How can this happen?
Friends, take this.
I am showing you a very important thing.
A very important thing.
Pick up the second entry.
Read the second entry once.
I will finish this notification.
You read the second entry till then.
Sir, this is the second entry.
We have bought furniture.
We have made a cash payment of Rs. 20,000.
So, furniture came on one side.
Asset increased, so furniture debit.
Credit, okay.
Sir, we have made this entry here.
How much was the furniture?
Pay attention.
How much was the furniture?
Brothers and sisters, pay attention.
Pay attention.
How much was it, sir?
Rs. 20,000.
And my dear friends, we came.
We tried to enter.
And we wrote furniture account debit to cash account.
Furniture account debit to cash account.
Sir, it is absolutely correct.
Absolutely correct, there is no mistake.
Furniture is coming.
Asset called furniture is increasing.
So we will debit.
And the property called cash.
Asset called cash is going.
So we will create it.
It is absolutely correct, sir.
There is no mistake.
Furniture account debit to cash account.
Very well written, sir.
And how much should be the amount?
Rs. 20,000.
How much should be the amount?
Rs. 20,000.
By mistake.
Here.
One zero.
Left less.
And we wrote.
Rs. 2,000 only.
We wrote.
Rs. 2,000 only.
What will happen by this?
Do you know what will happen by this?
In the account of furniture, the debit side will go only
Rs. 2,000.
That means.
The account of furniture which we have made.
In that also, the debit side.
Instead of Rs.
20,000, how much will be written?
My dear friends.
In that also, instead of Rs. 20,000, only Rs. 2,000 will be
left.
Only Rs. 2,000.
And what will be the effect of this?
Here.
By balance CDB.
Then instead of Rs.
20,000, how much will we write?
Rs. 2,000.
How much will we write?
Rs. 2,000.
Because we post the entry.
Furniture account.
Debit to cash.
There was nothing else.
Then what did we do?
We have to close the account.
We have to put a rule.
The total of the debit side is Rs. 2,000.
The zero of the credit side.
Rs. 2,000 minus zero.
What will be left?
Rs. 2,000.
And how much will we write the total?
Rs. 2,000 and Rs. 2,000.
Keep watching.
Keep enjoying.
Keep watching.
Keep enjoying.
And in the cash account also, the credit side.
Instead of Rs.
20,000, how much will go?
Rs. 2,000.
And in the cash account also, the credit side.
Instead of Rs.
20,000, how much will go?
Only Rs. 2,000.
Because of our mistake.
We saw the transaction and made entry to Rs. 2,000.
And in the account also, it will reach to the same.
Because we will make the account after seeing the entry.
We will make the account after seeing the entry.
Yes sir, you are saying it right.
You are right.
Now what will happen?
Now the buy beland cd of your cash account will change a
bit.
your cash account buy balance cd will change how sir? the
rules are same, debit side total will be 268,050 but credit
side total will be 2000 plus 50,000 plus 19,000 plus 10,000
plus 7,800 sorry plus 2000 plus 4000 plus 4,000 94,800 this
will be 94,800 credit side total earlier it was 1,12,800 so
if you write 20 as 2 then 18,000 will be deducted so from
1,12,800 you will deduct 18,000 so this is 94,800 now from
268,050 minus 94,800 this will be 1,66,050 so this will be
1,66,050 1,66,050
and in furniture account also 2,000 2,000
so friends now total your buy balance cds 1,66,050 plus
1,11,000
plus 2,000 plus 18,000 plus 14,000
sorry plus 150 plus 2 and 4 plus 6,000 3,17,200 sorry
3,17,200 my god this is a mistake in cash account also buy
balance cd is changed and in furniture account also buy
balance cd is changed 2 balance cd is not changed in cash
account also buy balance cd is changed and in furniture
account also buy balance cd is changed this is a mistake
still both sides total match is 3,17,200 how did this
happen friends
in buy balance cd 18,000 1,66,050 in furniture account
20,000 20,000 in buy balance cd 18,000 in buy balance cd do
not give absolute assurance because if you see your journal
entry if you see your journal entry So, what did you do in
the journal entry?
In the furniture to cash one, you should have done the
debit, 20 did 2000, and credit 20 did 2000.
So, friends, you have also reduced the debit from 18 and
the credit from 18.
You have reduced the debit and credit from how much?
You have reduced both from 18000.
So, debit and credit were here earlier.
You reduced both and brought 18000 here.
So, they are equal even today.
If you had reduced one, increased one, and added effect on
one, it would have been mismatched.
You have reduced both from 18000.
So, even today the balance will be matched.
That's why I say 99.99% assurance.
100% assurance is never there.
And you will understand this thing in detail in the topic
of trial balance.
It's time to say goodbye today.
I, Sushant Singh, say goodbye to you.
Be careful.
Keep reading in my language.
Keep revising. Be happy.
See you in the next clip.
Thank you. Bye-bye. Take care.