Even through the entire accounting system is now totally IT based, the basics followed are the same. Many accounting packages have come out with sophisticated features to manage the entire financial accounts of a company. Accounting packages like Tally, or any other software is designed with basic accounting principles of debit and credit, journal entry, ledger posting, and final profit and loss account and balance sheet.
Financial accounting and other finance details start with the initial journal entries which follow the common rule of debit and credit where receiver account is debited and outgoing account is credited. For example if you make a credit purchase from a trader, the purchase account is debited and the party’s account is credited. After purchase, the process of production [...]