Mngmt Accpounts Essay

748 WordsMar 10, 20123 Pages
Prepared for class discussion by Dr. Shilpa Dalvi 1 Prepared for class discussion by Dr. Shilpa Dalvi 2 What is Accounting? The art of:  Recording  Measuring  Classifying  Verifying  Summarizing  Interpretation of Financial Transactions Prepared for class discussion by Dr. Shilpa Dalvi 3 Luca Pacioli -Father of Accounting 4 What is Accounting? Accounting is the recording of dayto- day financial activities of a business entity and organization of that information into summary reports. Prepared for class discussion by Dr. Shilpa Dalvi 5 Financial Prepared for class discussion by Dr. Shilpa Dalvi 6 Identification of Financial Transactions 1. Signed a lease to rent an apartment at Rs. 20,000 per month 2. Paid rent Rs. 20,000 3. Appointed a manager at a salary of Rs. 30,000 per month 4. Sold goods for cash Rs 50,000 5. Bought machinery for Rs. 50,000, paid Rs. 20,000 in cash and agreed to pay the balance in three equal monthly installments Prepared for class discussion by Dr. Shilpa Dalvi 7 Identification of Financial Transactions 6. Bought goods worth Rs 20,000. Paid full amount in cash. 7. Sold goods for Rs 30,000. Cash received Rs 20,000 8. Took a loan of Rs 500,000 9. Agreed to buy goods worth Rs. 40,000. Agreed that 50% payment would be made at the time of delivery and the balance after 45 days. 10. Received the goods as mentioned in the transaction above. Prepared for class discussion by Dr. Shilpa Dalvi 8 Financial Item -- Rent Rent paid Rs. 20,000 Rent received Rs. 20,000 Rent paid in advance Rs. 20,000 Rent received in advance Rs. 20,000 Rent due but not paid Rs. 20,000 Rent due but not received Rs. 20,000 Prepared for class discussion by Dr. Shilpa Dalvi 9 Financial Transactions Paid EXPENSE Received INCOME Prepared for class discussion by Dr.

More about Mngmt Accpounts Essay

Open Document