DEPARTMENT OF TECHNICAL EDUCATION

:: AP
Name : B. VIJAYA KUMAR
Designation : Lecturer
Branch : Commercial & Computer Practice (CCP)
Institute : GPW/Guntur
Year/Sem : III Sem (C-05)
Subject : ACCOUNTANCY-II
Sub-Code : CCP-302
Topic : ACCOUNT CURRENT
Duration : 50 minutes
Sub Topic : Introduction to ACCOUNT CURRENT
Teaching Aids : PPT ANIMATION

CCP302.12 1
At the end of this class you would
understand the

(d) Parties to; &

(e) Heading of
(f) Account current

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Let us have a recap of what you
have learnt in the last class

CCP302.12 3
Recap
Account current

Meaning:

 Two parties with no. of business

transactions between them

 No separate settlement of each

transaction

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Recap
Account current

Need:

 To know the profit or loss

on account of interest

 To know the net amount due

CCP302.12 5
Recap
Account current

Method:

 Statement of account is prepared

by one party

 And sent to the other (second) party

CCP302.12 6
Recap
Account current

Method:

 Statement of account gives details

of transactions

 And interest receivable/payable

CCP302.12 7
Recap
Account current

Meaning:

 This statement of account is called account

current

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Recap
Account current
Definition:

“ Statement in debit and credit form,

Recording Transactions between two parties
during a particular period,
interest usually being calculated on each item
at an agreed rate and included in the account.“

-- J R Batliboi

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Account current

 It is usually sent by:

• Agent to Principal
• Consignee to consignor
• Creditor to debtor
• Banker to customer
• Manufacturer to dealer

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Account current – heading

 Name of person/party who receives

account current – appears first in heading
 Next the phrase “in accounting current with” should
come in the middle of heading

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Account current – heading

 Then, sender’s name should appear

at the end of heading

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Account current – heading

 Eg: Sachin in Account Current with Bretley

 In the above example, sachin is receiver,

i.e., the party to whom account current is sent

 Bretley is sender, who prepares and sends

account current to the receiver

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Account current – heading

 Eg: Sachin in account current with Bretley

 In other words, it is Sachin’s a/c in the

books of Bretley

 Therefore, transactions must be viewed from

Bretley’s point of view only

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 Account current – format
Sachin in Account Current with Bretley
Dr. Cr.
Date Particu Amount Days Product Date Particu Amount Days Product
lars lars
(Rs.) (Rs.) (Rs.) (Rs.)

E&OE

E & O E = Errors & Omissions Exempted

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 Summary

 Account Current is a copy of the Receiver’s

account in the books of the Sender. Parties to the
Account Current are:
(a) Agent to Principal
(b) Consignee to Consignor
(c) Creditor to Debtor
(d) Banker to Customer
(e) Manufacturer to Dealer

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Summary

 In the Heading, Receiver’s Name should come first,

followed by phrase “in Account Current with”, and
Sender’s Name at the end.

 Eg: Sachin in Account Current with Bretley

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Quiz

1) Account Current is rendered by:

(a) Wife to Husband
(b) Banker to Customer
(c) Consignee to Consignor
(d) Both (b) and (c)

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F.A.Qs

Short Questions:
1. List out the parties to Account Current?

2. Write a few sentences on the Heading of an Account

Current.
3. Draw the format of Account Current.

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 Assignment

1. Define an Account Current. Give instances of parties

who render account current.

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Assignment
2) For more information on this topic, please refer to:
a) “Introduction to Accountancy” by T.S. Grewal
b) “Advanced Accountancy” by Jain & Narang
c) “Introduction to Accountancy” by S.N. Maheswari
d) “Advanced Accountancy” by Shukla & Grewal
e) “Advanced Accountancy” by Gupta & Radhaswamy
f) “Principles & Practice of Book-Keeping” by
Ch. Shanmukhaswamy
g) Any other text book suggested by your teacher
h) Previous years’ exam question papers of SBTET

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