Are you preparing for the JAIIB exam and struggling with accounting concepts? Do terms like journal entries, personal accounts, and golden rules of accounting sound confusing? If yes, then this session is a must-watch for you!
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In this video, we break down the fundamentals of accounting—covering journal entries, subsidiary books, and types of accounts in the simplest way possible. You’ll learn practical applications, real-world examples, and exam-oriented explanations to make accounting effortless.
Whether you’re a banker preparing for JAIIB, a commerce student, or someone looking to strengthen your accounting basics, this session is designed for you.
- Journal Entries & Golden Rules of Accounting
- Personal, Real & Nominal Accounts Explained
- Subsidiary Books & Their Importance
- Practice Questions & Case Studies
- Common mistakes to avoid in accounting
🎥 Before we dive in, watch the full breakdown here:
Understanding Journal Entries & Types of Accounts
📌 What is a Journal?
The journal is the first step in accounting. It’s called the Book of Prime Entry because every financial transaction is recorded here before being transferred to the ledger.
Journals help businesses maintain a chronological record of all financial transactions, which are later classified and transferred to specific accounts in the ledger.
📝 Example:
Rohit Sharma invested ₹50,000 in business
Cash A/c Dr. ₹50,000 → To Capital A/c ₹50,000
📌 Types of Journal Entries
✅ Simple Journal Entry
Involves only two accounts—one debit and one credit.
💡 Example: Paid ₹10,000 wages to workers.
Wages A/c Dr. ₹10,000 → To Cash A/c ₹10,000
✅ Compound Journal Entry
Involves more than two accounts.
💡 Example: Paid ₹10,000 wages, ₹5,000 in cash & ₹5,000 via bank.
Wages A/c Dr. ₹10,000 → To Cash A/c ₹5,000 → To Bank A/c ₹5,000
Golden Rules of Accounting
- Personal Account Rule: Debit the receiver, Credit the giver.
- Real Account Rule: Debit what comes in, Credit what goes out.
- Nominal Account Rule: Debit all expenses/losses, Credit all incomes/gains.
Understanding these rules is essential for accurately recording financial transactions. Any errors in journalizing entries could lead to discrepancies in financial statements.
Common Mistakes in Accounting
Even seasoned professionals make accounting errors that can affect financial records. Here are a few mistakes to watch out for:
- 💡 Omitting Transactions: Forgetting to record transactions can result in inaccurate reports.
- 💡 Incorrect Classification: Misplacing an expense under an asset can lead to faulty balance sheets.
- 💡 Mathematical Errors: Small miscalculations can significantly impact financial statements.
- 💡 Ignoring Double Entry System: Always ensure every debit has a corresponding credit.
Conclusion
Accounting is the foundation of JAIIB’s AFM paper, and mastering journal entries & subsidiary books will boost your confidence.
- ✔️ Types of journal entries & their rules
- ✔️ Types of accounts & their classification
- ✔️ Golden rules of accounting
- ✔️ Subsidiary books & cash book importance
- ✔️ Common mistakes & how to avoid them
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