Office Management and Accounting
Office Management and Accounting tests how an office records, routes, and preserves information, plus the double-entry basics used in public and private offices. Expect filing methods, correspondence, cash book, journal, ledger, trial balance, and budget terms.
Core rules
- Filing systems: alphabetical (by name), numerical (by number), chronological (by date), and subject (by topic). Choose by retrieval speed and volume.
- Accounting equation: assets = liabilities + capital.
- Double entry: every transaction has equal debit and credit; debit the receiver and credit the giver is only a memory aid, not the full rule.
- Journal records transactions first; ledger classifies them by account; trial balance checks arithmetical equality.
Worked example
Purchased furniture for cash Rs 50,000. Furniture (asset) increases, so debit Furniture Rs 50,000. Cash (asset) decreases, so credit Cash Rs 50,000. Reason: an asset increase is debited; an asset decrease is credited.
Traps
- Recording a cash purchase as a credit purchase.
- Treating a trial balance as proof that no error exists.
- Confusing capital expenditure with revenue expenditure.
- Using debit to mean decrease in every account.