The one good decision I have taken is enrolling only in accounting pre-term. Today we had the last pre-term class on accounting. Just 4 classes and looks we learnt a lot in accounting. But still not confident enough. Prof was too good. For now the subject looks very interesting. But there is lot of confusion too.
The thumb rule one has to remember in accounting is:
Debit is "what comes in"
Credit is "What goes out".
Now I have got some brief idea about journal, ledger etc. Can I prepare a balance sheet on my own. Hmmm, may be..but not that confident. Can I understand the transactions happened by seeing the balance sheet. hmmm :-? may be.
Now the confusing part is " When there is an expense, that means we are spending some money and they are going out" Then why do we say expense is debited and income is credited. This is where we hve to stretch more.
Thats why finance = logic + commonsense + stretch. :-)
Term1 is gonna begin from Monday. The seating arrangement is decided and affixed on the lecture theaters for each section. Still need to finish the reading of marketing management case.
will try to finish it by this night. So that I can go out to city tomorrow.
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4 comments:
Well--There are 3 cardinal rules of accounting--You would learn more as the term goes by. And you wont be disappointed :) Keep learning
Guess who it is! I m an Accounting student and frm Bangladesh. Well ur understanding of debit and credit has some problems.
Increase in Expenses, Assets is Debit and Decrease in them is credit.
Decrease in Liability is Debit and Increase in Credit.
That's it. It is called the golden rule of debit and credit. U can solve all debit, credit with this rule.
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CTG
Hey CTG! How are u doing man! Just yesterday i have seen your posts at testmagic. Thats awesome. Good job there.
Hmmm..Thanks for the debit and credit rule. I wish you were a statistics student. :-D
Preity, I know stats very well. U can always take help if u have any problems. I think the best book is "Statistics for Mgt." by Levin & Rubin. They have discussed everything from layman point of view.
Thanx.
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CTG.
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