FINANCIAL ACCOUNTING SHORT NOTES

Lesson Objectives

On completion of this lesson, you will understand

Definition:  Accounting is the art of recording, classifying and summarizing transaction and event in terms of mony in a significant manner and interpreting the results thereof.

os  lHkh ysu nsu tks #i;ks ls lacf/kr gSa mu ysu nsuks dks O;kikj esa fy[kuk + mudk oxhZdj.k djuk ,oa lkjk”ka fudkyuk ftlls O;kikj ds ekfyd dks O;kikj dh vafre fLFkfr ds ckjs es irk py ldsA blfy;s Accounting dh tkrh gSaA 

Transaction:  dksb ?kVuk ftlls O;kikj dh vkfFkZd fLFkfr es ifjorZu vkrk gSa mls ysu nsu dgrs gSaA tSls %&

·         eky [kjhnuk @csapuk

·         [kpksZ dk Hkqxrku djuk

·         udn #i;s izkIr djuk

·         bl izdkj ds lHkh ysu nsu dks O;kikj fy[kk tkrk gSaA

[kkrs rhu izdkj ds gksrs gSa &

Real Account :-

o    os lHkh [kkrs tks fdlh oLrq ls lacf/kr gksrs gS vFkok ftUgs ge ns[k ldrs @Nq ldrs gS ;k eglql dj ldrs gSA tSls %&

Building, Cash Furniture, Computer

Personal Account :-

o    os lHkh [kkrs tks fdlh O;fDr ls lacf/kr gksrs gS tks nks izdkj ds gksrs gSA

§  Natural Personal Account :-

·         tSls %&    Ramesh a/c, Gopal a/c, Manish a/c

§  Artifical Personal Account :-

·         tSls %&    Bank a/c, Techosound a/c, BSNL a/c

Nominal Account:-    

·         os lHkh [kkrs tks O;kikj ds [kpksZ@vk; ls lacf/kr gksrs gS A

o    tSls %&Salary expenses, Rent expenses, Interest received, Commission Received.

Double Entry System:- bl iz.kkyh ds vuqlkj izR;sd ysu&nsu es geslk nks i{k gksrs gSA ,d i{k nqljs i{k dk foijhr gksrk gsSA bles ,d i{k dks MsfcV ,oa nqljs i{k dks dzsfMV fd;k tkrk gSa

Rules of Debit and Credit

Exercise: 1

  

S.No	Transaction
April 1.	Business started with with Cash Rs. 5,00,000
April 2	Goods Purchased from Mohan Rs. 40,000 on credit
April 3	Stationery purchased for cash Rs. 2,000
April 4	Opened a bank account with UTI bank by depositing cash of Rs. 50,000
April 5	Good sold of Riya for Rs 25,000
April 6	Received a cheque Rs 25,000 from Riya
April 7	Sold goods to Kishan Rs 12,000
April 8	Kishan pays Rs 12,000 cash
April 9	Goods Purchase for Rs 16,000 on credit from Neetu
April 10	Insurance paid by cheque Rs 8000
April 11	Paid Rs 4000 toward Rent by Cash
April 12	Good costing Rs 2500 given as Charity
April 13	Purchase office Furniture for Rs 10,500
April 14	Cash withdraw for household purpose Rs 2000
April 15	Interest received in Cash Rs 1000
April 16	Cash sales Rs 5,000
April 17	Commission paid Rs 1,000 by Cheque
April 18	Telephone bill paid by Cheque Rs 2500
April 19	Payment of Salary in Cash Rs 13,000

Exercise: 2

DATE	TRANSACTION
01.6.2011	Started a business with cash of Rs. 4,00,000.
03.6.2011	Opened a bank account in HDFC Bank by depositing Rs. 1,00,000.
05.6.2011	Purchased furniture of Rs. 20,000 by paying cash.
10.6.2011	Goods purchased from Rajan Traders for Rs. 50,000
15.6.2011	Sold goods on cash Rs. 25,000.
20.6.2011	Paid Insurance of Rs. 2,000 by cash.
22.6.2011	Paid Rs. 3,000 towards Rent in cash.
25.6.2011	Paid Rs. 5,000 as Salary to the manager in cash
26.6.2011	Sold goods worth Rs. 8,000 to Raghu
27.6.2011	Purchase stationery in cash Rs. 200.

Exercise: 3

DATE	TRANSACTION
1-4-2010	Business started with cash Rs 8,00,000
2-4-2010	Opened a bank account with UTI bank by depositing cash of Rs 5,00,000
3-4-2010	Purchase Plant and Machinery worth Rs 2,50,000 from  ABC & co by making immediate payment of Rs 50,000 in cash.
4-4-2010	Purchase goods worth Rs 30,000 for cash and Rs 55,000 on credit from Ram Traders
5-4-2010	goods Sold for cash Rs 80,000
6-4-2010	Proprietor  withdrew Rs 20,000 cash for personal use
7-4-2010	Paid Rs 3,000 by cheque  towards Insurance
8-4-2010	Paid Salary of Rs 7,500 in cash
9-4-2010	Purchase Furniture worth Rs 20,000 in cash
10-4-2010	Issued a cheque for 2,00,000 to ABC & Co towards the purchase of plant and machinery
11-4-2010	Took loan of Rs 20,000 from bank

Balance Sheet as on 31^st  March 2012

Liabilities	Rs	Assets
1.    Capital	XXXX	2.    Fixed Assets	XXXX
Capital		Furniture and fixture
Add: Net Profit		Plant and machinery
Interest on capital		Land and Building
Less: Drawings		Computer
Interest on Drawing		Goodwill
3.    Fixed Liabilities		4.    Long term Investment	XXXX
Long term Loans	XXXX	5.    Current Assets	XXXX
4.    Current Liabilities	XXXX	Cash in Hand
Bank over draft		Cash at Bank
Bill’s Payable		Bill’s Receivable
Sundry Creditor		Closing Stock
Advance Income		Prepaid Expenses
Outstanding Expense		Outstanding Income
	XXXX		XXXX