Human resource management is concerned with the "people" dimension in the management. Human resource management means the management of people within an organization . Since,every organization is made up of people, acquiring their services, developing their skills, motivating them to higher level of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieve organizational objectives. Those organization that are able to acquire ,develop ,stimulate and keep outstanding workers will be both effective and efficient. Those organizations that are ineffective or inefficient risk the hazards of stagnating or going out of business. Human resource does creates organization and makes them survive and prosper. If human resources are neglected or mismanaged, the organization is unlikely to do well. "Human resource management is the field of management which has to do with planning organizing and controlling the func...
HISTORY OF DOUBLE ENTRY SYSTEM
Double entry system is the most progressive, scientific and complete system of recording the financial transactions in a business. According to this, two accounts involved in every business transaction. One of them is debited and other is credited.
A book on the double entry system was first of all written in 1494 by LUCA PACIOLI. He is the resident of the city of VENICE IN ITALY. In this book he discussed the methods of recording both the aspects of a transaction that is one is debit and other is credit.
MEANING OF DOUBLE ENTRY SYSTEM
There can be no transaction in the business which effect only one account. As such both the aspects of every transaction recorded under this system. It means at least two accounts are affected by a transaction - one account receiving a benefit and the other account yielding a benefit.
For example - we received ₹ 3,00,000 from Harish. This transaction affects two accounts I.e. Cash Account and Harish Account. Cash Account receiving a benefit and hence Cash account will be debited, whereas, Harish is yielding a benefit and hence his account will be credited.
DEFINITION
According to J.R.BATLIBOI
" Every business transaction has a two fold effect and that it affects two accounts in opposite directions and if a complete record were to be made of each such transaction, it would necessary to debit one account and credit another account. It is this recording of the two fold effect of every transaction that has given rise to the term Double Entry System. "
PRINCIPLES OF DOUBLE ENTRY SYSTEM
Double entry system is based on the following principles
(a) When one party gives,there should be another accepting party I.e debit the account who receives an amount
(b) When an amount is given ,there should be the same amount is received, I.e credit the account who gives that amount.
FEATURES OF DOUBLE ENTRY SYSTEM
(a) Every business transaction has a two - fold effect, one of them is debited and other is credited.
(b) There are certain rules of recording these transactions. Debits and credits are made on the basis of these rules.
(c) Both personal and impersonal aspects of a transaction are recorded in this system.
(d) For the arithmetical accuracy of accounting records, trial balance is prepared.
ADVANTAGE OF DOUBLE ENTRY SYSTEM
1. This system is more scientific as compared to any other system of book- keeping because the transactions are recorded according to some specified rules.
2. In double entry system all accounts are recorded in three parts I.e.,personal account, real account, and nominal account and both the debit and credit aspects of a transaction are recorded in these.
3. The amount of debit side and credit side will always be equal and recorded in trial balance in order to check the arithmetical accuracy of the account.
4. With the help of Trial balance, profit and loss account are prepared to find the net profit earned or loss suffered during a particular period.
5. After preparing profit and loss account, a Balance sheet is prepared to know the exact financial position of the business. A Balance Sheet reports the property values owned by enterprise and the claims of the creditors and owner against these properties.
6. Double entry system helps to provide various information such as
(a) what is the amount of sales, purchase,and closing stocks?
(b) How much amount is to be paid and received?
(c) How much is the income and expenses?
7. Double entry system have a less chance of forgery and manipulation as compared to other systems.
8. Every legal authorities have trust on this system.
9. Account prepared under double entry system are comparable and understandable which helps in decision making.
10. This system is so flexible that it can be easily introduced in small as well as big businesses.
THANK YOU
SOURCE D.K GOEL
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