and other charges for credit card usage. NEFT: National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this scheme, any person can electronically transfer funds from any bank branch to any person having an account with any other bank branch in the country. RTGS: The acronym ‘RTGS’ stands for Real Time Gross Settlement, which can be defined as the continuous (real-time) settlement of funds transfers individually on an order by order basis.
(c) Credit transaction When settlement is not made by cash or through bank immediately in a transaction, it is called credit transaction. But, the amount is to be settled within a specified period. For example, purchase of goods on credit for ` , . In this case, goods worth ` , come into the business and a liability of creditors worth ` , arises.
. . Account Every transaction has two aspects and each aspect affects minimum one account. An account is the basic unit of identification in accounting.
A ledger account is a summary of relevant transactions at one place relating to a particular head. Account is the systematic presentation of all material information regarding a particular person or item at one place, under one head. . .
Approaches of recording transactions There are two approaches for recording transactions, namely, i) Accounting equation approach and ii) Traditional approach. . . .
Accounting equation approach The relationship of assets with that of liabilities to outsiders and to owners in the equation form is known as accounting equation. Under the double entry system of book keeping, every transaction has two fold effect, which causes the changes in assets and liabilities or capital in such a way that an accounting equation is completed and equated. Capital + Liabilities = Assets Capital can also be called as owner’s equity and liabilities as outsider’s equity. Accounting equation is a mathematical expression which shows that the total of assets is equal to the total of liabilities and capital.
This is based on the dual aspect concept of accounting. This means that total claims of outsiders and the proprietor against a business enterprise