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FINAL ACCOUNTS ADJUSTMENT NOTES

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  TALENT ACADEMY      ' TOPIC ADJUSTMENTS DRAWING S  NOTES BY FAISAL YAFAI     CA   C P T  ACADEMY IN ADILABAD Drawings of stock implies the Stock/Goods taken away by the proprietor or the partner for personal purposes. These goods are to be valued at cost and not at their selling prices. Recording Ā» Journal Entry We know that ledgers provide the information we need in accounting and anything that gets into the ledger should be through the journal. Even this forms a transaction that should be recorded through the journal. Debit Ā» Drawings a/c The value of goods taken away being drawings has to be debited to the "Drawings a/c" which represents the owner of the business. [Drawings a/c ā€“ Personal a/c ā€“ Debit the benefit receiver.]   Credit Ā» The value of goods withdrawn by the proprietor represents the value of stock that has not been used for trading purposes. To reveal the cost of g...
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final accounts adjustments notes topic

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  Adjustments are nothing but transactions relating to the business which have not been journalised. Therefore, to deal with adjustments one needs to understand the journal entry to be recorded if the transaction representing the adjustment is to be recorded in the books of accounts. The adjustments relating to prereceived/receivable incomes are dealt with here. S Topic NOTES prepaid by            FAISAL YAFAI { Faculty in ACCOUNTS @ MS COLLEGE HYD                                ADJUSTMENTS NOTES  FOR CA C P T &  Inter students... Incomes Receivable   At the end of the accounting period, there may be incomes which have become due but have not yet been received. If the organistion is following the mercantile system of accounting, these incomes are to be brought into account. Credit Ā» Income a/c "Income a/c" is ...
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final accounts adjustments notes by faisal yafai lecturer in commerce . TALENT academy

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djustments are nothing but transactions relating to the business which have not been journalised. Therefore, to deal with adjustments one needs to understand the journal entry to be recorded if the transaction representing the adjustment is to be recorded in the books of accounts. The adjustments relating to outstanding/prepaid expenses and pre-received/receivable incomes are dealt with here. Outstanding Expenses At the end of the accounting period, there may be expenses which have become due but have not yet been paid. If the organisation is following the mercantile system of accounting, these expenses are to be brought into account. Debit Ā» Expenditure a/c "Expenditure a/c" is a nominal account with a debit balance. The balance in the "Expenditure a/c" generally indicates the total amount paid on account of the expenditure during the current accounting period. To bring the expenditure that has not yet been brought into account i...
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clear Study Notes Q & A online-classes Contact Recommend_Us Capital, Profit, Loss :: An Understanding Learning Accounting through an example A poor unemployed person (we shall call him Oberoi) thought of making his livelihood by selling vegetables going around houses in a locality. He could only garner a small amount say Rs. 200/- with which he could start the business. ā€¢ Business In a very simple sense, business implies something that is carried on with a motive to earn profit/income. Profit motive is inherent in business. Not that every business generates profits, but the motive behind every act/transaction in a business would be making profit. ā€¢ Capital The amounts and other resources with which a business is started or carried on is called Capital. Owned Capital The amounts and other resources employed in the business which belong to the owner/owners of the business are together called owned capital. Loaned Capital The amounts and other resources employed in business which are borrowed by the owner/owners of the business from outside persons or organisations are together called loaned capital. Oberoi's Capital = Rs. 200/- Oberoi's daily routine He used to go to the wholesale market early in the morning to buy fresh vegetables which are generally available during that time. He bought vegetables from wholesale vendors. He then roamed around a locality selling the vegetables to various households. To make a profit he sold the vegetables at a price arrived at by adding a certain amount over his purchase price. ā€¢ Profit and Loss Profit = Selling price ā€” Cost price and Loss = Cost price ā€” Selling price Profit is a numerical figure. It can either be positive (when there is a profit), negative (when there is a loss) or zero when there is neither profit nor loss. A loss is also expressed as a negative profit. In a similar way, loss is also a numerical figure. It can either be positive (when there is a loss), negative (when there is a profit) or zero when there is neither profit nor loss. A profit can also be as a negative loss, but is seldom done. At the beginning and during the course of Day One Oberoi, went to the wholesale market, bought vegetables with the Rs. 200 (his capital) and then set out on his trip around the locality selling vegetables. Since the Rs. 200 he invested enabled him to buy a small quantity of vegetables, he could remember the prices at which he bought the various varieties. He was selling his stock by adding certain amount over the cost at which he purchased them. ā€¢ Price and Value Value = Price Ɨ Quantity ā‡’ Price = Value Ć· Quantity ā‡’ Value of a unit quantity is the price. Eg: The values of 5 kg goods is Rs. 80 ā‡’ The price of goods is Rs. 16/kg End of day One By evening, Oberoi, sold all the vegetables he purchased in the morning. He counted the cash with him at the end of the day. It was Rs. 280. Where did the extra Rs. 80 (280 āˆ’ 200) come from? It is on account of the profit he made by selling vegetables. Beginning of day two What is the capital Oberoi has? Since he has Rs. 280 at the end of day one, he can use all that for purchasing vegetables on day two. Therefore his capital is Rs. 280. What happened to his capital? Why? How? His capital has increased from day one to day two by Rs. 80. The reason for this increase is the profit he made on day one. From this we learn one of the fundamental understandings in accounting/business. ā€¢ Profit increases Capital As we make profits our capital increases. During the course of Day Two Oberoi, went to the wholesale market, bought vegetables with the Rs. 280 (his capital for day two) and then set out on his trip around the locality selling vegetables. Even on day two he was selling his stock by adding certain amount over the cost at which he purchased them. Towards the end of the day he noticed that there was certain stock left over which if he is unable to sell would get spoilt and he would get nothing out of it. Therefore he sold them by reducing the price. This price at which he sold the vegetables was far less than the price at which he bought them. End of day Two Oberoi, counted the cash with him at the end of the day. It was Rs. 260. Why a shortage, what happened to his Rs. 280/-. The shortage of Rs. 20/- (280 - 260) is on account of the loss he incurred in selling the vegetables. Beginning of day three What is the capital Oberoi has? Since he has Rs. 260 at the end of day two, he can use all that for purchasing vegetables on day three. Therefore his capital is Rs. 260. What happened to his capital? Why? How? His capital has decreased from day two to day three. The reason for this decrease is the loss he incurred on day two. From this we learn one another fundamental understanding in accounting/business. ā€¢ Losses decrease Capital As we incur losses our capital decreases. Author Credit : The Edifier ... Continued Page 2 news forum blog Financial Accounting ā€¢ Basic Accounting Process ā€¢ Consignment Accounting ā€¢ Bank Reconciliation Statement ā€¢ Partnership Accounts ā€¢ Final Accounts Bookmark and Share Site/Web Search Cost Management Accounting ā€¢ Process Costing ā€¢ Standard Costing (Varianc

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Capital, Profit, Loss :: An Understanding   Learning Accounting through an example     A poor unemployed person (we shall call him Oberoi) thought of making his livelihood by selling vegetables going around houses in a locality. He could only garner a small amount say Rs. 200/- with which he could start the business. ā€¢ Business In a very simple sense, business implies something that is carried on with a motive to earn profit/income. Profit motive is inherent in business. Not that every business generates profits, but the motive behind every act/transaction in a business would be making profit. ā€¢ Capital The amounts and other resources with which a business is started or carried on is called Capital. Owned Capital T he amounts and other resources employed in the business which belong to the owner/owners of the business are together called owned capital. Loaned Capital The amoun...
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http://www.futureaccountant.com/consignment-accounting/study-notes/valuation-normal-abnormal-losses.php

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http://www.futureaccountant.com/consignment-accounting/study-notes/valuation-normal-abnormal-losses.php
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COMMERCE COACHING IN ADILABAD: Accounting Equation - Part 1 (in Hindi)

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COMMERCE COACHING IN ADILABAD: Accounting Equation - Part 1 (in Hindi)
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COMMERCE COACHING IN ADILABAD: Accounting Equation - Part 1 (in Hindi)

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COMMERCE COACHING IN ADILABAD: Accounting Equation - Part 1 (in Hindi)
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COMMERCE COACHING IN ADILABAD: Accounting Equation - Part 1 (in Hindi)

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COMMERCE COACHING IN ADILABAD: Accounting Equation - Part 1 (in Hindi)
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COMMERCE COACHING IN ADILABAD: Accounting Equation - Part 1 (in Hindi)

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COMMERCE COACHING IN ADILABAD: Accounting Equation - Part 1 (in Hindi)
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COMMERCE COACHING IN ADILABAD: Accounting Equation - Part 1 (in Hindi)

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COMMERCE COACHING IN ADILABAD: Accounting Equation - Part 1 (in Hindi)
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Accounting Equation - Part 1 (in Hindi)

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COMMERCE COACHING IN ADILABAD: CA CPT qualified students at TALENT ACADEMY

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COMMERCE COACHING IN ADILABAD: CA CPT qualified students at TALENT ACADEMY
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CA CPT qualified students at TALENT ACADEMY

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1Sonam sharma 2) Deepak agarwal     3 Sajid  4) Aquib 5) Sharma 6)Nadeem   &Many more
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lecture on m.com 1st year & ipcc

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future of ca lecture

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advanced financial accounting

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financial accounting lecture

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financial management lecture

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accounting lecture on equation

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lecturre on future of company secretory

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ca coaching in adilabad

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FAISAL YAFAI Lecturer in commerce @ VIDYARTHI & GOVT  DEGREE WOMENS COLLEGE                                                                                Director  @  TALENT  ACADEMY                                                           We provide( CA CPT Coaching ) for INTER & DEGREE Students                     ...
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