Accounting

Things to remember

• Accounting is the systematic process of recording, classifying, summarizing, interpreting and communicating the financial information of a business for making financial decisions. 
• Every transaction is recorded in two accounts under double entry system. These are known as debit and credit accounts.
• Recording on debit account means entering the amount of the transaction on debit side of the account.
• Recording on credit account means entering the amount of the transaction on credit side of the account.
• The debit side is denoted by the word ‘Dr.’ and the credit side is denoted by the word ‘Cr.’