 We will discuss the Unit 4 of Financial Accounting of Become First Semester. Our focus point for today's discussion will be number 1, meaning of account and meaning of two terms, debit and credit. Before discussing the meaning of account or the terms of debit and credit, let us first recapitulate that we have learned in other chapters. So we know that in business, transactions are recorded. These transactions are recorded in the books of account and accounting serves as a source of information. These things we have discussed and these things will help us in discussing the further of about this unit and other systems or other steps in the whole accounting process. Let us first discuss the meaning of account, what we mean by an account. Let us start the discussion with an example. Suppose we are doing a business and here we are presenting the transactions of first six days of a particular month. So accordingly day 1, day 2, day 3, day 4 and day 5 and 6, we have recorded our transactions that have been taken place in our business. So there are purchase transactions, sales transactions on day 3, we have paid rent. Again on day 4 there are purchase transactions. Again on day 5 there is sale transaction, day 6 there is purchase transaction. In this way a business, in this example in our business we are recording the transactions. So now consider these are the transactions of only 6 days. But the similar transaction will take place for 10 days, 15 days, 25 days, 30 days. Now if someone asks you what is the total amount of purchase during 30 days. On this recording how we can calculate the total amount of purchase for 30 days. So we have to calculate the total amount of purchase by finding each and every transaction purchase transaction that have been taken place during the 30 days period. At the same time if someone asks what is the total amount of sale during the 30 days period. Then again we have to calculate each and every transaction means we have to find out each day whether sale transaction has taken place or purchase transaction has taken place. So we have to calculate, we have to find out then we have to calculate each and every transaction. But when the transactions are numerous business is very big, it is very difficult to calculate the transactions in this way by finding each and every transaction day wise. What we can do that we can place the purchase transactions in a particular place, sale transaction in a particular place then brand page, salary page etc. These transactions will be separated and will be placed at different positions. So in our example our purchase transactions are suppose 10,000, 20,000, 50,000. So we have placed all the purchase transactions in a particular place. Similarly we have applied the same principle in case of sale transactions we place the sale transactions in a particular place that is on a particular day we have done sale transactions of rupees 2000 on another day we have done transactions of rupees 10,000. So we have placed the similar type of transactions in a particular place. Now it will be easy for us to calculate the total amount of purchase for a particular period of time. It may be 30 days, may be 50 days, may be for 3 months, may be for 1 year. So the total amount of purchase in our example is 80,000 for 6 days. At a time we can see what is the total amount of purchase we can answer spontaneously. Accordingly we have applied the same theory in sale transaction and the total amount of sale is 12,000. Similarly grand pay there is only one transaction that is 3000 and in this way we will place all the transactions of similar nature in a particular place and that is known as account. So when we define an account we can define it as the a particular place where we put the transactions of similar nature. So similar types of transactions will be put under one head and that will be known as the account. So in this case it will be purchase account, sale account, grand pay, salary pay etc. All the transactions related to the particular head will be placed in a particular place and accordingly it will be calculated it will be totaled. So the definition of accounting shows that accounting is the process of recording, classifying and summarizing the transactions. So we have recorded all the transactions in our books of account then we classified the transactions then we summarized the transactions. So we have presented all the transactions in a summarized form. So this way the accounting serves as a source of information. We come to know very easily that the total amount of purchase is 80,000 for 6 days. So accordingly it will be for 30 days it will be the same process that we will record the transactions. Now let us go to the format of account generally we will keep the records in this particular format. Here we have written date particulars J F amount and the same thing we have recorded on the other side that is date particulars J F amount. So there are two sides of account one side is debit and the other side is credit. We have written it as DR that indicates debit and on other side we have written CR that is credit and the same things the columns are same date particulars J F amount. Again on other side date particulars J F amount and this is the particular format that we follow in recording the transactions. So from this table we can discuss the two terms debit and credit. So debit the left hand side of the account is called the debit side. Hence to debit an account means to record the transaction on the left hand side of the account. So whenever a transaction takes place if we record it in a particular account if it is on the left side it means it will be debit it. On opposite side the right side is credit side. So right hand side of the account is called the credit side. And when a transaction takes place if we record it on the credit side it means we have credited the account we have recorded that particular transaction on the right hand side of the particular account. Then there is another term J F J F means journal folio folio means it's a page number page number of journal book. In the journal book we have recorded this particular transaction again when we will come to the format of journal we will see that there will be another term L F it means leisure folio the page number of leisure book. So there will be a cross reference of these two books journal book and leisure book. Thank you very much for watching. In the second part we will discuss some other aspects of the same unit. Thank you.