financial accounting mgt101 power point slides lecture 10

Financial Accounting

1

Lecture – 10

Review of Last Lecture


2

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.


3

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.


4

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---


5

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

195,000Cash deposited0201-01---

Bank Account Code 02



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


6

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.Date15,000Furniture purch.0302-01---


7

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.Date50,000Vehicle purch.0403-01---


8

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

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

Purchases Account Code 06


Mr. A (Creditor) Account Code 07

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


9

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.


10

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

60,000Goods sold0606-01---



Sales Account Code 08

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


11

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

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




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


12

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

10,000Purchase return0810-01---




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


13

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.Date40,000Goods sold0912-01---


14

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.


15

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

5,000Sales return1018-01---




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


16

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

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




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


17

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

20,000Received from B1225-01---




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


18

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

5,000Salaries paid1331-01---

Salaries Account Code 10



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


19

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

20,000Exp. accrued1431-01---

Expenses Account Code 11


Accrued Expenses / Expenses Payable Account Code 12

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


20

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





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


21

Lecture – 10 Cash account


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


22

Lecture – 10 Bank Account


20,000Received from B1225-01---


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

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

5,000Salaries paid1331-01---

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



financial accounting mgt101 power point slides lecture 10

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