Operational Aspects of Accounting Entries
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 66 rapid-fire Q&A cards.
What is a journal entry in accounting?
A journal entry is the primary record of a financial transaction, showing the accounts debited and credited along with the amount and narration, following the double-entry system.
What is a compound journal entry in accounting?
A single entry recording multiple debits or credits simultaneously.
What does the term 'narration' mean in the context of a journal entry?
Narration is a brief description written below each journal entry explaining the nature of the transaction, helping in understanding the purpose of the debit and credit entries.
What is the golden rule for personal accounts in accounting?
Debit the receiver, credit the giver.
What is the purpose of a ledger in banking accounting?
A ledger is the principal book of accounts where all journal entries are posted account-wise, enabling the preparation of trial balance and financial statements.
What is the golden rule for real accounts in accounting?
Debit what comes in, credit what goes out.
What is meant by 'posting' in accounting?
Posting is the process of transferring entries from the journal (or subsidiary books) to the respective ledger accounts to maintain a classified record of transactions.
What is the golden rule for nominal accounts in accounting?
Debit all expenses and losses, credit all incomes and gains.
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