Hello, in the previous clip we have seen the meaning of
journal and the steps of journalizing and and and we have
also passed an entry that the book of accounts of original
entry means how to pass the entry in the first book.
Now what will happen today?
Today we will show you, we will show you, today there will
be more polishing of those steps.
The steps which we have seen in the previous clips of
journalizing, we have to polish, polish, polish, polish.
We have to put four moons in the same thing.
Okay, we are ready, we are also ready.
Come on, come on, come on, come on, come on.
Write transaction number 2
transaction number 2
Purchased goods for rupees 20,000 and payment made by
cheque.
Okay sir.
In the previous clip, we saw that the owner had invested
money in the business.
We had entered the bank account debit to owner's capital
account.
Now there is money in the bank account.
Money came in the bank account of the business.
What will we do with it?
Hey, we will buy goods.
We will buy building furniture goods.
We will sell them and try to earn profit.
Why did we invest that money in the bank account of the
business?
So that we can earn more money with that money.
So for this, we took the first decision that we buy goods.
We will buy them for rupees 20,000.
And we are thinking that we will sell them for rupees
30,000 and earn profit.
This is what we have to do now.
This is what we have to do.
First, we have to buy goods.
Don't sell them together.
First, we are buying goods with the thought that we will
sell them tomorrow and earn rupees 10,000.
We will sell the goods for rupees 20,000 for rupees 30,000.
While buying, while buying, this thought is in our mind.
We will buy for rupees 20,000 and sell it for rupees 30,000.
Now we are in Sheikhchilli.
And we have to buy and sell.
So now we will do the entry to buy.
The work that has been done.
We will not do the entry of what is in dreams.
Because tomorrow, if the dream is broken, then the heart
burns sometimes.
Yes, there is a little pain, but it works.
Don't say that.
Okay.
So when the sale will happen, we will talk about it.
Now only purchase.
Sir, what is the meaning of goods?
We have been hearing since childhood.
Goods means goods.
Now if you take double meaning, then your skin will be
removed.
Goods means goods.
Now remove goods.
I will tell you the basic meaning of goods.
The Hindi meaning that you have written, leave them.
I will tell you the simple meaning.
As simple as that.
Goods means anything that is bought.
With this intention.
That by buying it cheaply, we will sell it at a high price.
The same thing is called goods.
Oh ho ho.
Means.
The thing that while buying, we have this thought in our
mind.
That by adding a little from what we are buying, we will
sell the profit margin.
That thing is called goods in business.
There is a camera in front.
I bought this camera in front and brought it.
Is it good for me?
While buying it, this thought must have been in my mind.
That I buy it.
Oh brother.
Let them explain for two minutes.
While buying it, this thought must have been in my mind.
That I will sell it.
No.
Because I have not brought it to sell.
I have brought it to use.
So these are not goods for me.
Absolutely right.
Furniture is kept here.
When I bought it, I thought that I would sell it.
No.
While buying, this thought was in my mind.
That clients will come.
Children will come.
They will sit.
And this is furniture here.
So these are also not goods for me.
Now.
In my case, no goods will be made.
Because I am a teacher.
I do not sell anything.
I share knowledge.
So the discussion of goods is basically for traders.
We are service providers.
We give service.
The discussion of goods is basically for who?
For traders.
So as I give an example.
Equally.
I have told you before.
This is an actual example.
It will come somewhere in the next clips.
Equally.
There is a grocery shop.
Equally.
There is a grocery shop.
Right.
So what happens in that grocery shop?
That uncle is a trader.
He buys a lot of grocery from outside.
And then he sells it out.
So for him,
All the grocery he is buying.
What is that?
Goods.
I am wearing this shirt.
This shirt.
Ta ta ta.
The shop from which I bought this shirt.
He is a retailer.
He is a trader.
He brought this shirt from Delhi.
And he brought it for 1000.
With the thought that when the customer comes tomorrow.
I will sell it for 1200, 1300 or 1500.
Okay.
He sold it to me.
So what is this for him?
Goods.
He sold it.
That is why it is not goods.
He bought it.
With the intention that I will sell it by making it
expensive.
That shirt became goods for him.
Okay sir.
So in the same way.
We also bought some goods in our business.
For 20,000 rupees.
And we did its payment by cheque.
Now let's take some examples of these goods.
Let's say we take t-shirts here.
Yes sir.
Now we have to pass the journal entry through the same
steps.
Through the same steps.
We have to pass its journal entry.
Dear children, are you ready?
Yes sir.
Let's go.
Steps.
First step.
Identify.
Wait a minute.
Give me a sec.
Identify which accounts are involved.
Which two accounts will be affected.
From this transaction.
Now see this transaction.
This is the first thing.
This activity will affect the financial position of our
business.
Money will go from the bank.
And goods will come.
So there will be two effects.
There are only two aspects of every transaction.
This is also called the double entry system.
So this is the transaction.
As it is, I am writing.
I am explaining the transaction to you.
You don't need to check.
But when you practically work in an office.
So check this too.
If you are going to record something.
So is that transaction or not?
What if it is not the thing to be recorded in the business?
Okay.
Where is this mistake generally?
This mistake is generally.
You start recording the personal thing of the owner here.
The owner has paid the school fees of his child.
You will start entering it in the accounts.
In your tele, in the software, in the business.
Which will be a wrong thing.
Which will be a completely wrong thing.
Because this is affecting the financial position of the
business.
The owner has paid from his personal bank account.
Of his personal child.
What is the effect on the financial position of the
business?
Nothing.
Okay sir.
Okay.
Sir, if the owner pays the school fees of his child from
the bank account of the business.
Then this will become a transaction for the business.
Again the financial position of the business will be
affected.
Then it will become a transaction.
Where the involvement of the business has come.
There we will enter it in the business books.
Where there is no corner role of the business.
There is no need to think about its general entry.
Which two accounts will be affected?
Number one.
One will affect the bank account.
Our bank balance will be reduced.
Because we will make a payment of 20,000 from it.
That's why the bank account will be reduced.
Bank balance will be reduced.
Okay sir.
No problem with that.
Who will be the second effect?
The second effect will be.
That the goods will come to us.
Think about it.
There will be two incidents.
One is that money will come from the bank.
You have written its effect.
And the second incident is that money will go.
So what will come now?
Goods.
What will come?
Goods.
And to record goods, we will open an account.
Which name is a purchase account.
Whenever goods will come, then we will write in the name of
purchase account.
I bought a camera.
I won't write it as a purchase account.
Because camera is not a good thing for me.
I bought furniture.
I won't write this in the purchase account.
Because that is no good for me.
Whatever I buy to sell.
For example a t-shirt.
I will record that in the purchase account
In our example, it's a t-shirt
I won't be able to buy it because I'm a service provider
Okay sir
Okay So the balance of the purchase account will increase
If you're buying goods, then purchase
Purchase of goods
Purchase word itself means
Purchase of goods
Purchase word itself means
It's implied in itself
That we're talking about the purchase of goods
Okay sir
Now what do you have to do?
You have to apply step number 2
Purchasing goods is an expense
Friends, remember
I'm writing with a red pen
Purchasing goods is an expense
This is an expense
And bank
You already know
Bank is our asset
It's our property
Our balance in the bank account
Bank is not our property
Our balance in the bank account
It's our asset
So tell me
Expense is increasing
And asset is decreasing
So what is the rule for this?
Sir, we had written
Go back and check
If the expense increases, sir debits
And if the asset decreases, sir credits
Absolutely right
So the expense of the purchase is increasing then we will
debit the purchase account
Purchase Account Debit and as the asset called bank is
decreasing so we will credit it to Asset Account
and I have already told you how to write it that we write
it like this
Purchase Account Debit and a little bit of tilt to Asset
Account now what is the name of this asset
I have written it as asset because I have got lost in my
emotions that is the same thing we have to write the name
of the asset which asset has decreased? Bank Balance how
much money? 20,000 20,000 here we will write the date
whatever the date will be for example 10th April 2023 here
we will write the date above we will write the particulars
Date, Particulars, Amount
Rupees that's it and the last step is Narration we will
narrate what we have done
Goods Purchased
that is T-Shirts now above we are writing the word Purchase
we are not getting to know from the word Purchase from the
word Purchase we are getting to know that we are buying
goods which we are going to sell that's all we are getting
to know what is the thing which we are going to buy and sell
T-Shirts you can write it in the Narration and when we will
go to Teleprime it gives a separate option that what you
are purchasing is fine but what are you buying in the goods
tell us practically what is the name of the thing you are
buying so this is the second entry
Purchase Goods for 20,000 and payment made by
Check
Thank you