BASIC ACCOUNTANCY PROCEDURES
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the fundamental accounting equation?
The fundamental accounting equation is Assets = Liabilities + Capital (Owner's Equity). This equation must always remain balanced after every transaction.
What is a Petty Cash Book used for in accounting?
Recording small day-to-day miscellaneous cash expenses of a business.
What does the term 'double entry system' mean in accountancy?
The double entry system means every financial transaction affects at least two accounts — one account is debited and another is credited by equal amounts, ensuring the accounting equation stays balanced.
What is the 'Imprest System' in petty cash management?
Fixed amount given to petty cashier, reimbursed when nearly spent.
What is a Journal in accounting?
A Journal is the book of original entry (prime entry) where transactions are recorded chronologically as they occur, before being posted to the ledger.
What is the distinction between a Nominal account and a Real account?
Nominal accounts relate to income/expenses; Real accounts relate to assets.
What is a Ledger in accountancy?
A Ledger is the principal book of accounts where all journal entries are classified and posted account-wise, providing a complete record of each account's transactions and balance.
What is the golden rule for Personal accounts in double entry bookkeeping?
Debit the receiver; credit the giver.
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