Recording of Transactions-I

fonts of printing are used. Some of the specimen of the accounting vouchers are given in the earlier pages. A accounting voucher must contain the following essential elements : It is written on a good quality paper; Name of the firm must be printed on the top; Date of transaction is filled up against the date and not the date of recording of transaction is to be mentioned; The number of the voucher is to be in a serial order; Name of the account to be debited or credited is mentioned; Debit and credit amount is to be written in figures against the amount; Description of the transaction is to be given account wise; The person who prepares the voucher must mention his name along with The name and signature of the authorised person are mentioned on the voucher. Accounting equation signifies that the assets of a business are always equal to the total of its liabilities and capital ( owner’s equity ).

The equation reads as The above equation can also be presented in the following forms as its derivatives to enable the determination of missing figures of Capital(C) or Liabilities(L). Since, the accounting equation depicts the fundamental relationship among the components of the balance sheet, it is also called the Balance Sheet Equation. As the name suggests, the balance sheet is a statement of assets, liabilities and capital.