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Lesson Posted on 25/01/2021 Learn Unit 1-Financial Accounting(Part A)Theoretical Framework
S. Lakshmi Priya Sankaran
I am basically a commerce graduate. Teaching and training is my passionate area. Hence I wanted to train...
Answered on 29/09/2020 Learn Accountancy
Arshi
Experienced and Certified Economics and Commerce teacher with 10 years experience in teaching.
Lesson Posted on 01/09/2020 Learn Accountancy
Abhishek Pansari
100% concept clarity. I clear all your doubts with complete satisfaction.
We all know this subject very well from our childhood. Remember those days of childhood when we share toffee and chocolates with your brother, sister and friends; we use to either keep more or give less, which means we hate to get less. Consider this less as LOSS.
Then we grew up a little bit when parents started to give us pocket money, and our relatives gave us lifafa. Forget those lifafa as our parents use to keep those lifafas always. So what remains with us in only the pocket money provided by our parents and we use to give them "hisab". That where and how much we had spent. This hisab is the accounts which we use to write in a paper or a diary.
In this subject, we will learn to keep the more FORMAL hisab with some fancy words or terms. That is all. Being honest with you friends, you don't need a tutor for this subject. You know this subject very well.
All the best for your brightest future friends!
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Lesson Posted on 28/08/2020 Learn Accountancy
Chapter 1 - Introduction to Accounting
Dhanalakshmi R
I am giving home/online tuition as I am certified in Madras University and Annamalai University having...
History of Accounting :
Before knowing the history of accounting, let us know about the history of money which is the basis of the accounting process.
Money :
Item or verifiable record accepted for payment of goods and services, repayment of debts, taxes etc.,
No one sure about the information regards money, but METAL is used as money in early 5000 B.C.
Barter system :
In Ancient times Mediaeval European used tally sticks as evidence for remembering debts.
The barter system is an exchange of goods directly for goods and services.
The barter system is not delayed in time.
Bilateral basis :
Eg. Alice exchange apple 🍎 to John exchange 🍊 orange.
Multilateral basis :
Eg.Alice exchange apple 🍎 to John exchange orange 🍊 to Charles exchange 🍐 pear to Alice.
Later in the year 600 to 650 B.C.
LYDIAN KINGDOM of Western Asian culture is known to be the IRON AGE KINGDOM are the first to make coins.
They are originators of GOLD and SILVER COINS. Other countries to start their specified value coins.
MONEY ORIGIN 💰:
In the year of 1000 B.C - 400 A.D. standardised coins had been established in 7 th century.
Later in 11th century, some empires and dynasty's period silver coins are used for the transaction held.
Indian sub-continent - SHER SHAH SURI (1540 - 1545).
During this empire, period introduced silver coins called RUPIAH weighing 178 gms, and it is used and continued in MUGHAL EMPIRE 13 th century
Paper money is well known in Europe through Accounting traveller's as MORCOPOLO and WILLIAM OF RUBRUCK ( Explorers) from middle east and central Asia.
For a large sum of money used for long-distance of transporting transaction. Money traders start using promissory notes, which is the basis for traders to start using banknotes. Promissory notes predecessor to regular Banknotes.
During 18th and a quarter of 19th century Bills of exchange is used and essential before the raising of Banknotes.
Account:
In 1300 " Counting", " reckoning", of money transaction (action of process of calculating or estimating something).
Calculation in Latin word as Computer means to count or sum up.
Father of Modern Accounting :
LUCA PACIOLI - 1494
History of Accounting and Accountancy can be traced 1000 years old in ancient civilizations.
Early development of Accounting dates back in Mesopotamian age closely related to developments in writing or counting or money to access the detail report of financial information.
Many parts of the world Accounting can be used widely for the recording of goods and services related activities are evidence seen in the Egyptians and Babylonians period.
Mesopotamian used primitive accounting methods for keeping records that detailed transaction involving domesticated agriculture setting (Animal's, livestock, crops commodities such as MEAT, FUR, MILK, EGGS, LEATHER and WOOL).
In India, philosopher and economist CHANAKYA wrote ARTHSHASTRA BOOK in 2nd century B.C. It contains details and advice on how to maintain record books of accounts.
Origin of Accounting:
Bookkeepers :
They emerged during the period of the Barter system. They classified the records under CASH ECONOMY and COMMERCE ECONOMY.
They kept transaction in Individual ledgers for the proof if dispute raises, a matter brought before a magistrate.
New and improved ledgers :
During currencies became very important and available TRADESMEN and MERCHANTS began bookkeeping for build material and wealth. Also, to know what they owed and who owed debts to them.
In Until 1400s single column information has been maintained.
Eg. Sale of three chickens Rs.48/-
Sale of seeds Rs.900/-
Bought goods Rs.200/-
It will be time-consuming and inefficient in tallying method.
The Mathematical Monk :
During 15th century Italian monk LUCA PACIOLI structured and laid the groundwork of modern accounting. He Published the book " SUMMA DE ARTHIMERTICA" in 1494, shows benefits of Double entry system. It is the simplest form of maintaining separate debits and credits providing a clear picture of the company and overall strength. The general public has no access to such records.
Eg. Sale of three chickens Rs.48/-
Debit cash Rs.48/-
Credit chicken Rs.48/-
Sale of seeds Rs.900/-
Debit cash Rs.900 /-
Credit seeds Rs.900/-
It gives awareness of the financial health of the company.
Financial statements :
Prepared to attract INVESTORS, CORPORATIONS, SHAREHOLDERS.
Income statement and cash flow statement documents were proof of companies profit-making abilities.
It stimulating operations and profits for making a complete study of trusting and it's management.
Birth of Accounting profession :
Accountants are made essential for attracting investors to maintaining investors confidence. Hence, the Accounting profession was recognised in 1896 and title established of CPA ( certified public accountant).
Accounting today :
Using a large number of tools for calculating receipts and payments for quickly reconciling books and technology has brought Accounting software as quick books show job faster and more accurate information with less time-consuming.
read lessLesson Posted on 24/07/2020 Learn Accountancy
Nitin Saraswat
I am a Chartered Accountant and currently working with an MNC as an Associate Director. Total years of...
Accruals in Accounting are the expenses or revenues that have been recorded by the firm but not yet realised. In simple terms, they are the financial transactions already estimated in the current accounting cycle and payment for which is done in the future.
Let’s look at a few practical accrual accounting examples.
Example 1: Salaries Payable
On 31 December 2020 salary for December amounting, Rs 20,000 to be paid in January 2021 shall be recorded as under. Salary account shall be debited (accounting rule: debit all expenses), while salary payable account will be credited (Liability created).
31/12/2020 | Salary Expense A/c | Dr. | 20,000 | |
Salary Payable A/c | Cr. | 20,000 |
Example 2: Rent Receivable
On 31 December 2020 rent for December amounting Rs 20,000 to be collected in January 2021 shall be recorded as under. Rent Receivable account shall be debited (Asset created: to be received), while Rent Income account will be credited (accounting rule: all income and gains should be credited).
31/12/2020 | Rent Receivable A/c | Dr. | 20,000 | |
Rent Income A/c | Cr. | 20,000 |
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Lesson Posted on 28/05/2020 Learn Accountancy
H.I.T.E
We are an institute imparting training on Commerce, Economics (Hons) and IT Training. The teachers are...
Accounting is part and parcel of our daily life. We are indulging in accounting activities in our everyday life. But we are unaware of it. For example, we go for marketing with say Rs. 1000/-. We buy different items, like fruits, vegetables, grocery items, stationery etc. When we come back home, we segregate all items, keep things in its respective places viz. vegetables in refrigerator, groceries and condiments in the kitchen, toiletries in the bathroom, stationeries in the study room and so on. Suppose we keep items in haphazardly, it would be challenging to trace them out easily and would be very irritative. Therefore, we keep each item on its concerned places. It is what about accountancy. Further, we make a note of each expenditure and summarize them to reach out the total amount spent on every month viz. for education, entertainment, medical, grocery, eating out etc.
The accounting is defined in the manner mentioned ibid.
Accounting is both an art and science.
It is an art of recording, classifying and summarizing financial transactions in a systematic and significant manner.
We can read it deeply why accounting is an art and science too, why financial transactions are a core part of accountancy and so on.
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Lesson Posted on 09/04/2020 Learn Accountancy
Madhura Sagar Gadre
With over more than ten years of experience as a tutor for accountancy, finance, Taxation, Costing and...
Dear Students,
Identification of Revenue and Capital natured expenditure is essential for us. It is the base for many of the chapters in your Accountancy Syllabus. Let us understand these terms with several examples-
1. Capital Expenditure - You must have observed that some of the business expenditures give long term benefits to an organisation. Say, for example, purchasing a property, Patent rights or Automobiles, etc. Business reaps the benefit of these Assets purchased over several years. Does a Business have to buy Machinery, Land, Buildings, Trademarks, Furniture, Huge Electronic Equipment every year? The answer is "NO". A Fixed Asset purchased servers a business for many years. Thus, the purchase of Fixed Asset is a Capital Expenditure. Students, please note that Capital Expenditures are Presented in the Balance sheet.
2. Revenue Expenditure - Many business expenses have to be made multiple times in a year. These expenses comprise of purchasing Raw materials, Paying wages and salaries to the staff members, paying electricity bills, paying rent, expenditure towards freight, carriage, fuel, etc. This expenditure that is recurring in nature or has to be made almost every year are called Revenue expenses. Generally, these expenses appear in the Trading/ P&L Account.
I hope this makes the concept clear.
All the best!!!
read lessLesson Posted on 09/04/2020 Learn Accountancy
Forfeiture Of Shares (II PUC And CBSE Accountancy)
Madhura Sagar Gadre
With over more than ten years of experience as a tutor for accountancy, finance, Taxation, Costing and...
The term Forfeiture of Shares refers to Cancellation of Shares by the Company. The company decides to cancel/forfeit the shares of a member/shareholder as, the shareholder must not have responded to the payment calls of the company. The company, however, has to give a fourteen days notice to the shareholder before going for the Forfeiture of shares.
It should be noted that the company does not refund the amount already paid by the shareholder in the earlier stages (say for example application money) in case of the Forfeiture of the shares held by that shareholder.
The following journal entry is passed during the Forfeiture:
Share Capital A/c......Dr.
To Forfeited Shares A/c.
To Share Allotment A/c.
To Share Call A/c.
Here, the amount already paid by the shareholder say in Application Stage is also forfeited and goes to 'Forfeited Shares A/c'. The above example assumes that the concerned shareholder has not paid the allotment money and calls money.
Lesson Posted on 10/01/2020 Learn Tuition
Rishi Parmar
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Lesson Posted on 27/11/2019 Learn Accountancy
Hema B.
So I am a fresher in b. Com and a learner by all means. But it's my passion to expand knowledge by teaching....
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