financial accounting mgt101 power point slides lecture 10

Financial Accounting

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Lecture – 10

Review of Last Lecture

Financial Accounting

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Lecture – 10

• Transactions of Ali Traders for the month of January.

No. Date Particulars

20--

01 Jan 01 Started business with Rs. 200,000 in cash.

02 Jan 01 Opened a bank account and deposited Rs. 195,000 in it.

03 Jan 02 Paid for furniture Rs. 15,000 through cheque.

04 Jan 03 Paid for vehicle Rs. 50,000 through cheque.

05 Jan 05 Bought goods on credit from Mr. A for Rs. 50,000.

06 Jan 06 Sold goods for cash Rs. 60,000.

07 Jan 08 Purchased goods for cash Rs. 20,000.

Financial Accounting

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Lecture – 10

No. Date Particulars

20--

08 Jan 10 Returned goods of Rs. 10,000 to Mr. A.

09 Jan 12 Sold goods on credit to Mr. B for Rs. 40,000.

10 Jan 18 Mr. B returned goods of Rs. 5,000.

11 Jan 21 Paid through cheque to Mr. A Rs. 25,000.

12 Jan 25 Mr. B Paid through cheque Rs. 20,000.

13 Jan 31 Paid Salaries through cheque Rs. 5,000.

14 Jan 31 Accrued expenses for the month Rs. 20,000.

15 Jan 31 Deposited in bank Rs. 10,000.

Financial Accounting

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Lecture – 10 01 – Started business with Rs. 200,000 in cash.

200,000Capital Introd.0101-01---

Cash Account Code 01

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date

Capital Account Code 03

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date200,000Capital Introd.0101-01---

Financial Accounting

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Lecture – 10 02 – Deposited Rs. 195,000 in bank.

195,000Cash deposited0201-01---

Bank Account Code 02

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date

Cash Account Code 01

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date195,000Cash deposited0201-01---

Financial Accounting

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Lecture – 10 03 – Paid for furniture Rs. 15,000 through cheque.

15,000Furniture purch.0302-01---

Furniture Account Code 04

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date

Bank Account Code 02

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date15,000Furniture purch.0302-01---

Financial Accounting

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Lecture – 10 04 – Paid for vehicle Rs. 50,000 through cheque.

50,000Vehicle purch.0403-01---

Vehicle Account Code 05

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date

Bank Account Code 02

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date50,000Vehicle purch.0403-01---

Financial Accounting

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Lecture – 10 05 – Bought goods on credit from Mr. A Rs. 50,000.

50,000Goods purch.0505-01---

Purchases Account Code 06

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date

Mr. A (Creditor) Account Code 07

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date50,000Goods purch.0505-01---

Financial Accounting

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Lecture – 10 Creditor

• Creditors are the third persons/parties, from whom business owes money. These are payables of the business against purchase of goods for resale purposes.

Financial Accounting

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Lecture – 10 06 – Sold goods for cash Rs. 60,000.

60,000Goods sold0606-01---

Cash Account Code 01

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date

Sales Account Code 08

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date60,000Goods sold0606-01---

Financial Accounting

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Lecture – 10 07 – Purchased goods for cash Rs. 20,000.

20,000Goods purch.0708-01---

Purchases Account Code 06

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date

Cash Account Code 01

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date20,000Goods purch.0708-01---

Financial Accounting

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Lecture – 10 08 – Returned goods of Rs. 10,000 to Mr. A.

10,000Purchase return0810-01---

Mr. A (Creditor) Account Code 07

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date

Purchases Account Code 06

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date10,000Purchase return0810-01---

Financial Accounting

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Lecture – 10 09 – Sold goods on credit to Mr. B for Rs. 40,000.

40,000Goods sold0912-01---

Mr. B (Debtor) Account Code 09

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date

Sales Account Code 08

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date40,000Goods sold0912-01---

Financial Accounting

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Lecture – 10 Debtor

• Debtors are the third persons/parties, who owe money from the business. These are receivables of the business against sale of goods.

Financial Accounting

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Lecture – 10 10 – Mr. B returned goods of Rs. 5,000.

5,000Sales return1018-01---

Sales Account Code 08

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date

Mr. B (Debtor) Account Code 09

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date5,000Sales return1018-01---

Financial Accounting

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Lecture – 10 11 – Paid through cheque to Mr. A Rs. 25,000.

25,000Paid to Mr. A1121-01---

Mr. A (Creditor) Account Code 07

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date

Bank Account Code 02

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date25,000Paid to Mr. A1121-01---

Financial Accounting

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Lecture – 10 12 – Mr. B Paid through cheque Rs. 20,000.

20,000Received from B1225-01---

Bank Account Code 02

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date

Mr. B (Debtor) Account Code 09

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date20,000Received from B1225-01---

Financial Accounting

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Lecture – 10 13 – Paid Salaries through cheque Rs. 5,000.

5,000Salaries paid1331-01---

Salaries Account Code 10

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date

Bank Account Code 02

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date5,000Salaries paid1331-01---

Financial Accounting

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Lecture – 10 14 – Accrued expenses for the month Rs. 20,000.

20,000Exp. accrued1431-01---

Expenses Account Code 11

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date

Accrued Expenses / Expenses Payable Account Code 12

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date20,000Exp. accrued1431-01---

Financial Accounting

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Lecture – 10 15 – Deposited in bank Rs. 10,000.

50,000Cash deposited1531-01---

Bank Account Code 02

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date

Cash Account Code 01

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date10,000Cash deposited1531-01---

Financial Accounting

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Lecture – 10 Cash account

Cash Account Code 01

Date No Narration Dr. Rs Date No Narration Cr. Rs

01-01---

01 Capital Introd 200,000 01-01---

02 Cash Deposited

195,000

06-01---

06 Goods Sold 60,000 08-01---

07 Goods Purch

20,000

31-01---

15 Cash Deposited

10,000

Financial Accounting

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Lecture – 10 Bank Account

195,000Cash deposited0201-01---

20,000Received from B1225-01---

10,000Cash deposited1531-01---

15,000Furniture purch.0302-01---

50,000Vehicle purch.0403-01---

5,000Salaries paid1331-01---

25,000Paid to Mr. A1121-01---

Bank Account Code 02

Cr. Rs.NarrationNo.DateDr. Rs.NarrationNo.Date