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Jaiib Bookkeeping B
Jaiib Bookkeeping B
DR CR
A RAMESH 1 REAL
C RENT 3 NOMINAL
D COMPUTER 4 REAL
E LAND 5 NOMINAL
F DISCOUNT 6 PERSONAL
QUESTION
• WHAT IS JOURNAL ENTRY
• A. ORIGINAL ENTRY
• B. DOUBLE ENTRY
• C DUPLICATE ENTRY
• NONE
QUESTION
• TRANSACTION IN BANK COLUMN ON CREDIT
SIDE OF THREE COLUMNAR CASH BOOK
INDICATE
• A. AMOUNT WITHDRAWN FROM BANK
• B.AMOUNT DEPOSITED IN BANK
• C.BOTH A AND B
• D. NONE
QUESTION
• PASS JOURNAL ENTRY:
• RENT PAID FOR OFFICE PREMISES RS.30000
OUT OF WHICH PART AMOUNT OF RS.10000
PAID BY CHEQUE AND REST BY CASH.
QUESTION
• PASS JOURNAL ENTRY:
• PURCHASED 100 SHARES OF CENTRAL BANK
OF INDIA FOR RS.100 PER SHARE.
QUESTIONS
• PASS JOURNAL ENTRY:
• SOLD GOODS TO TENDULKAR RS.15000
QUESTIONS
• PASS JOURNAL ENTRY:
• DRAVID INVOICED GOODS FOR RS.12000 TO
US.
QUESTIONS
• PASS JOURNAL ENTRY:
• RECEIVED DUE AMOUNT FROM
TENDULAKAR AND ALLOWED HIM DISCOUNT
OF 10%
QUESTIONS
• PASS JOURNAL ENTRY:
• PAID SALARY AND RENT RS.1200 AND 1500
RESPECTIVELY.
QUESTIONS
• PASS JOURNAL ENTRY:
• KIRAN BECAME INSOLVENT. HE HAD TO PAY
10000 TO US. BUT WE RECEIVED ONLY 25
PAISE A RUPEE.
QUESTION
• PASS JOURNAL ENTRY:
• PAID MONTHLY CAR INSTALMENT OF
PROPRIETOR’S PERSONAL CAR RS.12000
QUESTION
• PASS JOURNAL ENTRY:
• BOUGHT FURNITURE FROM GODREJ AND
PAID BY CHEQUE RS.50000
QUESTION
• PASS JOURNAL ENTRY:
• DEPOSITED CASH IN BANK RS.1000
QUESTION
JOURNALIZE FOLLOWING:
COMMENCED BUSINESS WITH Rs.15000 OF
WHICH RS.5000 WAS BORROWED FROM HIS
WIFE AT 12% INTEREST P.A.
QUESTIONS
• PASS JOURNAL ENTRY:
• PURCHASED GENERATOR FROM RAMA & CO.
RS.50000
QUESTIONS
• PASS JOURNAL ENTRY:
• PAID CARRIAGE AND CARTERAGE ON GOODS
SOLD TO NAYAN ON HIS BEHALF.
QUESTION
• PASS JOURNAL ENTRY:
• BOUGHT GOODS FROM SATISH AT ONE
MONTHS CREDIT RS.6000
• OUT OF WHICH HALF WAS INVOICED TO MR.
RAM AT 30% ABOVE COST.
Adjusting and closing entries.
• While preparing trading and profit and loss
account all expenses and income for the full
period are to be taken into consideration. If
expenses have been incurred but not paid
during that period ,liabilities for unpaid
amount should be created before the accounts
can be said to show the actual profit and loss.
All expenses and income should properly be
adjusted through accounting entries.
Adjusting and closing entries.
• Trial balance is prepared from the books of
accounts of organiztion. Final accounts are the
final processof accounting. Once the trial balance
is prepared the books are half way closed.
• Now all ajusting enties passed at the time of
preparing the final accounts have dual effect i.e
both debit and credit.
• Hence all adjusting entries passed after Trial
balance drawn will have two effects.
Adjusting and closing entries.
• One in either trading and profit and loss
account and other in Balance sheet or one in
trading account and other in Profit and loss
account.
Adjusting and closing entries.
• Some examples:
• Closing stock adjustment:
• Will be shown in asset side of balance sheet and
will be shown in credit side of trading account.
• Goods lost by fire:
• Will be shown in credit side of trading account.
• Will be shown on debit side of profit and loss
account.
Adjusting and closing entries.
• Outstanding expenses:
• Will be shown in debit side of profit and loss
account.
• Will be shown in liabilities side of balance sheet.
• Prepaid expenses:
• Prepaid expensesshown in Asset side ( Dr Pre
paid expenses) and Credit P&L Expenditure as
they do not pertain to current year.
Adjusting and closing entries.
• Depreciation: It is fall in value of asset due to
use or passage of time.
• Depreciation Dr.
• To asset account.
ACCOUNTING STANDARDS.
• INSTITUTE OF CHARTERED ACCOUNTANTS OF
INDIA RECOGNISING THE NEED TO
HARMONISE THE DIVERSE ACCOUNTING
POLICIES AND PRACTICES CONSTITUTED AN
ACCOUNTING STANDARDS BOARD IN THE
YEAR 1977.
• ASB FORMULATE ACCOUNTING STANDRDS
SO THAT COUNCIL OF ICAI MAY MANDATE
SUCH STANDARDS.
OBJECTIVES QUESTIONS ON
ACCOUNTING STANDARDS
• Q. MANDATORY ACCOUNTING STANDARD IF
NOT FOLLOWED REQUIRES AUDITORS WHO
ARE MEMBERS OF ICAI TO :
• A. QUALIFY THEIR AUDIT REPORTS.
• B. INFORM TO MANAGEMENT OF COMPANY
• C. INFORM TO ICAI
• D. NEED NOT REPORT ANYTHING.
QUESTIONS
• SEBI AND COMPANY’S ACT REQUIRE
AUDITORS TO QUALIFY AUDIT REPORTS THAT
• A. THAT DO NOT CONFORM TO MANDATORY
ACCOUNTING STANDARDS.
• B. CONFORM TO MANDATORY ACCOUNTING
STANDARDS.
• C. DO NOT CONFORM TO ACCOUNTING
STANDARDS.
• D . NO RESPOSIBILITY ON AUDITORS.
QUESTIONS.
• Q WHICH SECTION OF COMPANIES ACT CAST
RESPONSIBILITY ON BOARD OF DIRECTORS TO
COMPLAY WITH MANDATORY ACCOUNTING
STANDARDS:
• A. SECTION 217(2AA)
• B. SECTION 215
• C. SECTION 125
• D. SECTION 44.
DAY BOOK AND GLB POSTING IN A
BANK..
• IN THE CONTEXT OF ACCOUNTING IN BANKS
DAY BOOK OR CASH BOOK (BOTH ARE USED IN
SAME CONTEXT : SOME BANKS CALL IT CASH
BOOK SOME BANKS CALL IT DAY BOOK) HAS
SUMMARY OF TOTAL TRANSACTIONS IN
RESPECT OF EACH ACCOUNTING HEAD OF
BALANCESHEET AND PROFIT AND LOSS
ACCOUNT.
• THE AMOUNT OF EACH OF TRANSACTIONS
DONE IN BRANCH OF BANK IN THE DAY ARE
DAY BOOK AND GLB POSTING IN A
BANK..
• SUMMARIZED AND RECORDED HERE. FOR
INSTANCE ALL THE TRANSACTIONS IN SAVINGS
ACCOUNTS OR ALL TRANSACTIONS IN CURRENT
DEPOSITS ACCOUNTS ARE RECORDED IN
SUMMARIZED FORM WITH REGARD TO BOTH
DEBIT AND CREDIT SIDE. WHICH ARE BROUGHT
FROM SUPPLEMENTARY BOOKS WHICH ARE
AGAIN SUB SUMMARY OF TRANSACTIONS IN AN
ACCOUNT SAY SAVINGS OR CD.
DAY BOOK AND GLB POSTING IN A
BANK..
• FROM DAY BOOK THE FINAL DEBITS AND CREDITS
ARE POSTED IN THE RESPECTVE LEDGERS WHICH IS
KNOWN AS GENERAL LEDGER. GENERAL LEDGER IS
NOTHING BUT BOOK CONTAINING INDIVIDUAL
LEDGERS FOR EACH INDIVIDUAL TYPE OF ASSET OR
LIABILITIES. FOR INSTANCE ENTIRE CURRERNT
DEPOSIT TRANSACTIONS ARE POSTED IN CURRENT
ACCOUNTING HEAD IN GENERAL LEDGER. SIMILARLY
FOR SAVINGS ACCOUNT OR FURTNIUTE ACCOUNT
OR STATIONERY ACCOUNT AND SO ON.
DAY BOOK AND GLB POSTING IN A
BANK..
• THE GENERAL LEDGER BALANCE IS VIRTUALLY
TRIAL BALANCE OF THE BANK ON A PARTICULAR
DAY. IT REFLECT THE BALANCES OF ALL
ACCOUNTS . WHILE PREPARING BALANCESHEET
AND PROFIT AND LOSS ACCOUNT OF BRANCH
OF BANK THE GLB BALANCES ARE TAKEN.
• BALANCESHEET OF ALL BRANCHES TOGETHER
WHEN CONSOLIDATED BECOMES THE BALANCE
SHEET OF BANK.
GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES.
• The common set of accounting principles,
standards and procedures that companies use
to compile their financial statements. GAAP
are a combination of authoritative standards
(set by policy boards) and simply the
commonly accepted ways of recording and
reporting accounting information.
GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES
• GAAP are imposed on companies so that
investors have a minimum level of consistency
in the financial statements they use when
analyzing companies for investment purposes.
GAAP cover such things as revenue
recognition, balance sheet item classification.
Companies are expected to follow GAAP rules
when reporting their financial data via
financial statements.
GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES